Caterpillar has announced that it is contemplating allocating the volumes produced at its Gosselies facility in Belgium, which primarily manufactures construction equipment, to other manufacturing facilities. This announcement, which is in connection with the global restructuring and cost savings plan announced in September 2015, starts an information and consultation process, which could result in the closure of the Gosselies site and a collective lay-off.
Following extensive review, Caterpillar is thinking about reallocating the volumes to the manufacturing facility in Grenoble, France, and to other manufacturing facilities outside Europe., and allocating component production to external suppliers and other Caterpillar facilities and to consolidate support functions to other sites.
“We have to contemplate actions to reduce manufacturing capacity and take operating costs out of our business to align with lower demand. Should the intention be confirmed, we will support the local leadership in order to mitigate the impact on our employees, their families and the communities where we’re located,” said Tom Pellette, group president with responsibility for Construction Industries.
During the upcoming information and consultation process, Caterpillar is committed to comply with the applicable laws and to engage in a constructive dialogue with the employee representatives in order to minimise the social impact.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/05092016/caterpillar-contemplates-reallocating-volumes-193/