Caterpillar contemplating closure of Belgian plant with 2,000 employees
Shares in Caterpillar were up in early morning trading after it announced it was considering the closure of a production plant in Gosselies, Belgium.
Caterpillar Inc.
$356.27
11:04 17/05/24
Dow Jones I.A.
40,003.59
04:30 15/10/20
As part of a restructuring programme announced in 2015, as many as 10,000 jobs could be lost at the US heavy machinery manufacturer over the next three years, including the closure of 20 plants.
On Thursday, the firm announced that it would close a plant in Belfast, Northern Ireland, leading to the loss of 200 jobs there.
"We have to contemplate actions to reduce manufacturing capacity and take operating costs out of our business to align with lower demand," said Caterpillar's Construction Industries President, Tom Pellette, in a statement.
Caterpillar referred to global risks such as Britain's decision to leave the European Union, as well as ongoing political unrest in Turkey as leading to decreased demand for its products.
The government of Belgium have been in contact with the company, and it has said that it looks like the plant will remain closed for good.
"We are in contact with the directors of Caterpillar, but all the signs point toward a closure of the site," said a spokesman for the Belgian prime minister.
Last month, it reported a drop in its second quarter profit, and said that it was not expecting a rebound in its sales of machinery this year.