Caterpillar discontinues track drill production

By |  August 19, 2016

cat_logoIn order to focus on those products with the greatest growth potential, Caterpillar Inc. announced it intends to pursue strategic alternatives, including the discontinuation of track drill production within its Resource Industries portfolio.

“Caterpillar remains committed to an extensive mining product portfolio,” says Denise Johnson, group president with responsibility for Resource Industries. “We firmly believe mining is an attractive long-term industry, and we continue to invest in a broad range of products, both surface and underground. We are targeting our investments within the mining product portfolio to concentrate on those areas with the highest profitability potential,” she says.

“At the same time, we continue to manage through the longest down-cycle in our history. We know these ongoing restructuring actions are not easy on our workforce; I’m grateful for our team’s ongoing dedication.”

In Denison, Texas, where track drills are produced, approximately 40 positions will be eliminated as a result of the track drill exit and other facility restructuring.

In addition to these moves, the company also continues to evaluate the most efficient and effective use of its manufacturing footprint. The company announced it will repurpose its Winston-Salem, N.C., facility, transitioning it from a mining to a rail facility beginning later this year. Operations will transfer to Progress Rail, a wholly-owned Caterpillar subsidiary.

As a result, the company will relocate the manufacturing of some components used in large mining trucks from its facility in Winston-Salem to its existing facility in Decatur, Ill.

About the Author:

Darren Constantino is an editor of Pit & Quarry magazine. He can be reached at dconstantino@northcoastmedia.net.

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