Caterpillar to close three plants in Illinois

By WEEK Producer

June 6, 2014 Updated Jun 6, 2014 at 10:13 PM CDT

DIXON and STERLING, Ill. -- Caterpillar announced Friday that it will be closing three facilities in Sterling and Dixon, Illinois.

The company plans to consolidate production and distribution operations from the Illinois plants to its facility in Menominee, Michigan.

About 170 full-time Illinois employees are affected by this consolidation.

"We recognize that this decision will be difficult for our employees,” said Greg Folley, vice president with responsibility for Caterpillar’s Remanufacturing, Components and Work Tools Division. “This decision is not about the performance of these plants, but rather about improving efficiency across the component manufacturing footprint and reducing the cost structure driven by three independent facilities, while providing the highest quality products to our customers.”

All four plants belong to Anchor Coupling, a wholly owned subsidiary of Caterpillar.

Severance packages will be offered to displaced employees affected by the transition.

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