Caterpillar said it is contemplating moving production away from its plant in Gosselies, Belgium, in favor of other facilities. The plant primarily makes construction equipment. The announcement begins an information and consultation process, which could lead to the closure of the facilities and a collective layoff of employees.
Caterpillar made the announcement as part of its global restructuring and cost savings plan announced in September 2015. The company is considering moving the production to its manufacturing facility in Grenoble, France, and other manufacturing plants outside of Europe.
Caterpillar is also considering allocating component production to extrenal supplier and consolidating support functions to other sites. If that occurs, Caterpillar would lay off about 2,000 employees from the Gosselies site.
“We have to contemplate actions to reduce manufacturing capacity and take operating costs out of our business to align with lower demand,” said Tom Pellette, group president with responsibility for construction industries. “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."
During the upcoming information and consultation process, Caterpillar said it is committed to complying with applicable laws and to engage in a constructive dialog with employee representatives in order to minimize the social impact.
