Cat plans to close Illinois plant, lay off 800 workers

By |  April 3, 2017

Caterpillar’s medium wheel loader production will be moved to its North Little Rock, Illinois, plant. Photo courtesy of Cat

Caterpillar plans to close its Aurora, Illinois, plant and lay off about 800 employees in anticipation of a decline in demand for its products, according to The Associated Press.

Cat reported a fourth-quarter loss of $1.17 billion on revenue of about $9.6 billion in January, AP says. The company will move its large wheel loader and compactor production to its Decatur, Illinois, plant, and it will move its medium wheel loader production to its North Little Rock, Arkansas, plant.

Cat will close its Aurora plant by the end of 2018, but it plans to maintain an Aurora office for some of its engineers and product support employees.

The company has cut its workforce by more than 16,000, sourcing a slumping economy, Reuters reports. Cat has noted that it would take another $500 million in restructuring costs in 2017.

Despite these cuts, Cat plans to add about 500 positions to its Decatur plant and 150 positions to its North Little Rock plant, according to Reuters.

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Megan Smalley is the associate editor of Pit & Quarry. Contact her at or 216-363-7930.

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