Cat plans $1 billion expansion project

[GaryC 7]

As some of you know I work for a company that does all of Caterpillars factory maintenance. This news practically assures me a steady job until I retire. I know they are already buying new equipment in our plant. It's hard to keep up with all the brand new technology but at least I am working and not bored! Anyone looking for a job? Come to Peoria, we are booming here!

Cat plans $1 billion expansion project

PEORIA —

Caterpillar Inc. sent a message to its employees, shareholders, customers and competitors on Thursday: It believes it can remain at the top globally while still making products from its home base in central Illinois.

In announcing it will spend $1 billion over the next two years to upgrade its Illinois operations and expand manufacturing capacity, Caterpillar let employees know its plants in the Peoria area and all of Illinois are going to be around for the long term, and Caterpillar will remain a world class, globally competitive manufacturer.

"This assures a long-term future for these facilities," said Group President Doug Oberhelman. "We are investing a lot of money almost everywhere we have a facility so that no matter where we are, we will compete globally."

Caterpillar's plans, some of which are not finalized yet, will likely include a shifting of some operations - especially with a decision to stop making on-highway truck engines - and may mean employment goes up at some plants and down at others. But Oberhelman said the company will make every effort to protect its employees.

"There are going to be a lot of moving parts to make this thing go. We don't have a final game plan yet as to who or what will be where," he said.

Its truck engine plans were made known in a separate news release, in which Caterpillar said it will join with Navistar International Corp. in an alliance to pursue on-highway truck business opportunities - including development of a new commercial truck - and cooperate on future engine technology.

Investors welcomed the news. In trading on the New York Stock Exchange, Caterpillar shares were up nearly 2 percent, closing at $80.50 a share, up $1.57.

Charlie Rentschler, an analyst with Wall Street Access, said he believes investors were reacting more to Caterpillar's decision to leave the on-highway truck engine business than the capital expenditure plan.

Still, he believed the capital expenditure plan "is wonderful, but long overdue. I mean, the last few years, Caterpillar has spent more on repurchasing its own shares than on cap ex. Then it can't make enough products to keep up with demand because it doesn't have enough capacity in its Illinois plants. Hello! They need to do this. It's a good thing."

Also greeting the news with optimism was United Auto Workers Local 974, the union representing hourly Caterpillar workers in the Peoria area.

Rick Doty, president of Local 974, said the union thinks it is great that Caterpillar intends to invest money in its area plants. He said that bodes well for the area and for employees.

"We still don't know if it is going to cost us or gain us jobs, and we won't until it happens. But this does show that the company is willing to spend money in its union communities, and it shows commitment to the area," Doty said.

Investments will be made in plants in East Peoria, Mossville, Joliet, Decatur and Aurora, including new tooling, machines and equipment with which to make product.

Oberhelman declined to discuss where specific dollars will be spent, saying some decisions still must be made, but said Illinois plants don't need more square footage but improved efficiency to increase production and keep up with demand. He said the company hopes to finalize those plans within a year.

"This is certainly very positive news for the Illinois communities where we operate as we invest today to strengthen our global leadership position in the industries we serve and to maintain our ability to profitably compete in the global economy," said Caterpillar Chairman Jim Owens in a prepared statement.

"This restructuring and capital investment in critical North American operations demonstrates our optimism about the global markets we serve and Caterpillar's long-term commitment to our employees, our customers and our stockholders."

Caterpillar plans include:

- In East Peoria, increasing capacity for track-type tractors, pipelayers and for off-highway transmissions;

- In Decatur, expanding capacity to increase large off-highway truck production;

- Expanding in Aurora for increased production of wheel loaders and excavators;

- Expanding capacity to increase production of service parts to support Caterpillar dealers and customers; and

- Investing in Joliet to increase component production capacity.

The decision to stop making on-highway truck engines at Mossville and Greenville, S.C., will leave those plants with greater capacity. Decisions will be made how to use it while protecting jobs.

The company is contemplating building a plant in a location to be determined to produce off-highway, heavy-duty engines currently made at Mossville.

As part of the restructuring, Caterpillar is exploring several options for moving other manufacturing operations into Mossville and is "examining options to centralize engineering and design functions by locating a new machinery and engine product design center in Mossville for large products."

Other possible changes include:

- To support the off-highway truck capacity expansion, Caterpillar will study alternative locations for a U.S. manufacturing facility for motor graders, currently located in Decatur.

- To facilitate expanded capacity in East Peoria, Decatur and Aurora, lower power train production located in those facilities could be moved to other U.S. Caterpillar locations.

- To better focus on prime product opportunities for wheel loaders and excavators produced in Aurora, tube manufacturing done there will likely be outsourced to a U.S. supplier.

Sid Banwart, vice president of human services for Caterpillar, said the company anticipates the restructuring "will create positive opportunities for the vast majority of our employees."

He added, "Consistent with Our Values In Action, if we have any employees who are displaced, we will work hard to support them with job reassignments, training, educational and other opportunities. Even positive changes like these can create questions for employees, and we want all of Team Caterpillar to understand that as these exciting plans proceed over the next several years, our goal is to minimize any negative impact these changes might have on our employees."

http://www.pjstar.com/business/x390608211/...-truck-alliance

[Hilarious Clinton 452]

cool we have two D8s, a D9 and two 836s for our radioactive landfill..... oh and a Deere 1050 that is always breaking down.

They'll be buried in our pit when it's all over.

[GaryC 7]

cool we have two D8s, a D9 and two 836s for our radioactive landfill..... oh and a Deere 1050 that is always breaking down.

They'll be buried in our pit when it's all over.

Thats what you get for buying a Deere. Cat's are made much better. It's really amazing to watch the process from cast parts and flat steel to a completed dozer. I work in the building that makes the transmissions. Cast blanks go in one door and transmissions the size of large pick-up trucks go out the other. Everything is made in house.

[w¡n9Nµ7 §£@¥€r 123]

Good news!

[mawilson 2,133]

That's really great, Gary!

(1 billion expansion project? new jobs? how is it possible when our economy is "in ruins"? )

[w¡n9Nµ7 §£@¥€r 123]

Hmm I just googlemapped Peoria, interesting loc right in the midpoint between Chi and Stl....

[Pinocchio Liberal 268]

That's really great, Gary!

(1 billion expansion project? new jobs? how is it possible when our economy is "in ruins"? )

Talk to Barry

[Teacher Mark 53]

Hmm I just googlemapped Peoria, interesting loc right in the midpoint between Chi and Stl....

That's a nice area of the Country.

[GaryC 7]

Hmm I just googlemapped Peoria, interesting loc right in the midpoint between Chi and Stl....

It really is a great area. I live in East Peoria. Very quiet, low crime, housing is affordable and the countryside is beautiful. This really was the best move of my life when I came here. Now that it looks like we will weather any economic storm that may be coming I can breath a little easier.

[w¡n9Nµ7 §£@¥€r 123]

Hmm I just googlemapped Peoria, interesting loc right in the midpoint between Chi and Stl....

It really is a great area. I live in East Peoria. Very quiet, low crime, housing is affordable and the countryside is beautiful. This really was the best move of my life when I came here. Now that it looks like we will weather any economic storm that may be coming I can breath a little easier.

Happy for you, man!

[Ban Hammer 13,346]

Hmm I just googlemapped Peoria, interesting loc right in the midpoint between Chi and Stl....

It really is a great area. I live in East Peoria. Very quiet, low crime, housing is affordable and the countryside is beautiful. This really was the best move of my life when I came here. Now that it looks like we will weather any economic storm that may be coming I can breath a little easier.

and there is a really nice lady there from PI

[SMOKE 1,426]

great news Gary. so when does Luz get a matching mustang?

[GaryC 7]

great news Gary. so when does Luz get a matching mustang?

Only if it's one made in the 70's. My car is just to big for her. She can't see over the hood. She likes this car though:

[Ban Hammer 13,346]

great news Gary. so when does Luz get a matching mustang?

Only if it's one made in the 70's. My car is just to big for her. She can't see over the hood. She likes this car though:

show her this........

link

[GaryC 7]

Hmm I just googlemapped Peoria, interesting loc right in the midpoint between Chi and Stl....

It really is a great area. I live in East Peoria. Very quiet, low crime, housing is affordable and the countryside is beautiful. This really was the best move of my life when I came here. Now that it looks like we will weather any economic storm that may be coming I can breath a little easier.

and there is a really nice lady there from PI

No kidding! She makes everything better!