Caterpillar Inc. last week notified 814 production employees at its Mossville, Ill., engine assembly facility that the company would indefinitely lay off those employees. In recent months, production volumes at the Mossville engine facility have decreased significantly. This is primarily related to a decrease in orders for on-highway truck engines made in Mossville, lower demand for engines used in Caterpillar machines and decreased demand for commercial engine applications.

"These decisions are never easy, and we understand these layoffs will create challenges for many of our employees and their families," said Gary Stroup, Caterpillar vice president with responsibility for Large Power Systems Division.

Employees impacted by this decision were notified last week by Caterpillar and were told that the layoffs would begin on Feb. 23, 2009. In addition, various government agencies and other officials were notified of this decision under the United States Department of Labor's Worker Adjustment and Retraining Notification Act and the Illinois Worker Adjustment and Retraining Notification Act.

Caterpillar also announced temporary layoffs last week at its facilities in Clayton and Sanford, N.C., though it did not disclose the number of employees affected.

The company, which previously announced it would shut down the two plants for 10 days this month, also said it is planning additional non-production days in 2009.

Peoria, Ill.-based Caterpillar Inc. is a leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.