Caterpillar said it is cutting 175 temporary production workers at its Desford, U.K., manufacturing plant, the Leicester Mercury reported. The company had the most productive year in more than half a century at its Leicestershire factory in 2011 and forecast a further production increase this year, but suffered a slump in orders recently. The eurozone crisis and uncertainty in the United States have affected demand, the Mercury said.
Caterpillar officials said the company engages in ongoing communications with its suppliers about its planned build rate to enable them to make plans accordingly. Still, the paper reported, some of the suppliers in the area expressed surprise at the production slowdown.