Caterpillar Announces Plant Closings in Scotland, Iowa and Oregon
Undated (AP) _ Caterpillar Inc., the earth-moving equipment manufacturer, tentatively plans to close plants employing more than 2,800 in Iowa, Oregon and Scotland as part of a long-term retrenchment, the company said today.
As part of the retrenchment plans Caterpillar will take a pre-tax charge of $109 million in its fourth quarter, spokesman Gil Nolde said today.
Plant closings are planned in Davenport, Iowa; Dallas, Ore.; and near Glasgow, Scotland, under the plan, said Nolde.
″The point is ... these are contemplated closings, subject to discussion with the unions involved,″ Nolde said in a telephone interview from the company’s Peoria, Ill. headquarters.
The closings would probably not occur before 1988, he said.
The moves are part of the company’s long-term plan to reduce costs and improve efficiency, Nolde said.
The 2.4 million-square-foot Davenport plant employs more than 1,300 people; the plant in Oregon employs 331 people; and the one in Scotland has 1,220 employees, he said.
Officials in Scotland expressed anger at the planned closing of the machine parts and tractor plant outside Glasgow at Uddingston, which they said was announced with no prior notice to the government.
As recently as September, Caterpillar had announced a $92 million modernization of the plant intended to make it Caterpillar’s biggest European operation.
The government had promised substantial cash aid, thought to be around 6 million pounds, for the now-aborted expansion plan.
Scottish Secretary Malcolm Rifkind said: ″I very much regret and deplore the decision. I will be holding urgent discussions with the company.″