Caterpillar laying off 460 workers, cites weakness in mining

CHICAGO, April 5 Fri Apr 5, 2013 2:06pm EDT

CHICAGO, April 5 (Reuters) - Caterpillar Inc said on Friday it was laying off 460 workers at a U.S. plant that makes mining equipment.

The layoffs will affect about 11 percent of the workforce at the Decatur, Illinois, factory and reflect softening demand from the global mining industry, which is cutting back on capital investment because of a retreat in commodity prices.

Caterpillar, which had already implemented temporary layoffs and line shutdowns as well as a shortened work week in Decatur, said the permanent layoffs were needed to "bring production in line with demand."

It said the job cuts would take effect in 60 days.

Caterpillar is the world's largest maker of mining equipment. The Peoria, Illinois-based company also makes construction equipment, gas turbines and diesel engines, and railroad locomotives.

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Comments (1)
brendonbutler wrote:
Anyone interested in Caterpillar should learn its impact on the history of metal output from all global mining activities before investing.

Caterpillar has knowledge of a global mining issue that it does not want any one else to know about.
The issue is how Caterpillar, Sandvik and Atlas Copco have developed their hard-rock underground mining machinery to form a certain evolution of underground metal out put capabilities. This is because these three companies have essentially been the only manufacturers in underground mining development for the last 100 years.
The evolutionary path they have taken is now restricting underground mining output as for what could be achieved if they totally reform their mining techniques. However, this would increase global metal supply drastically therefore slashing their surface mining sales.
This is detailed in a publication you can find at scribd.com called All-Metal-Economics
A serious and provocative insight to the formation of the current global mining industry and Caterpillar’s involvement never seen before. Plus how it has all just been challenged.

Apr 05, 2013 5:09pm EDT  --  Report as abuse
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