Caterpillar to close Danville facility; decision impacts 75 jobs, include the 25 to be moved to Illinois


Caterpillar Inc. will close its undercarriage components facility in Danville as it continues its global restructuring efforts first announced in September.

According to a press release from the Danville-Boyle County Economic Development Partnership and Boyle County Industrial Foundation, Caterpillar said it would shift production to other locations and strategic suppliers. The transition, expected to be fully complete in 2017, will impact approximately 75 positions, 25 of which will be moved to East Peoria, Illinois.

Components made in Danville go to track-type tractors used in construction and mining.

“Caterpillar recognizes these restructuring actions are tough and impact its talented and dedicated workforce,” Penny Wu, Caterpillar Inc. Global Government and Corporate Affairs Division, was quoted as saying. “While difficult, the company must continue with these efforts given the market conditions and the need to reduce costs.”

Caterpillar in Illinois

Caterpillar in Illinois

This announcement is one of a continuing series of closure announcements that began in September when Caterpillar Inc. first announced that 10,000 jobs would be eliminated due to the company’s third year of significant sales declines, Danville officials said.

“I feel deeply and personally the loss of any job in our community under these circumstances and at this time of year,” said Danville-Boyle County Economic Development Partnership President/CEO Jody Lassiter. “Regrettably, Caterpillar’s announcement is not unexpected given the significant business decline the company has experienced the past few years. This is a corporate decision that impacts many plants and thousands of jobs in the U.S.; it does not in any way reflect upon the high quality of workers that Danville’s Caterpillar facility has been blessed to employ.”

Caterpillar’s statement came the same day that Gov. Steve Beshear announced National Office Furniture will invest $530,000 in its Danville facility. The investment will create 40 jobs and increase the location’s production capabilities.

“With several local industrial expansions underway and new projects in our pipeline, I am confident that our community can provide other employment opportunities to those affected by Caterpillar’s closure over the next 18 to 24 months,” Lassiter said.

From Danville-Boyle County Economic Development Partnership, Boyle County Industrial Foundation


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