CHICAGO (CBS) — After nearly a century in central Illinois, Caterpillar Inc. has abandoned plans to build a new headquarters complex in Peoria, and has announced it is moving its corporate offices to Chicago.
“Caterpillar’s Board of Directors has been discussing the benefits of a more accessible, strategic location for some time,” Caterpillar CEO Jim Umpleby said in a statement Tuesday. “Since 2012, about two-thirds of Caterpillar’s sales and revenues have come from outside the United States. Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently.”
Caterpillar said it expects about 300 employees eventually will be based at its new headquarters in Chicago once it is fully operational. The vast majority of its employees and operations will remain in Peoria, which has been the company’s hometown for more than 90 years.
Peoria Mayor Jim Ardis said he’s disappointed some Caterpillar jobs will be leaving for Chicago, but he said he’s pleased the overwhelming majority of employees will be staying.
“If Caterpillar succeeds globally, we win in Central Illinois. I’m disappointed we can’t keep every job here, but if moving some of its team near Chicago helps Caterpillar thrive, it will benefit Peoria, our county and the surrounding communities,” said Peoria County Board Chairman Andrew Rand.
The construction and mining equipment company has been suffering falling sales in recent months, because its customers have been hurt by lower oil prices, and slower economic growth, forcing them to buy less equipment.
from CBS Chicago http://ift.tt/2kQBuQJ
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