CATERPILLAR ANNOUNCES CLOSURE OF FORESTRY PLANT IN OWATONNA,MN
(The following is a reformatted version of a press release issued by Caterpillar Inc. and received via electronic mail. The release was confirmed by the sender.)
November 8, 2012
Caterpillar Announces Closure of Forestry Plant in Owatonna, Minnesota
Production to shift from Owatonna to other existing U.S. Caterpillar plants, positioning the company for long-term competitiveness in the forest products business
Owatonna, MN - With a focus on making decisions and taking actions that will best position the company for long-term success, Caterpillar Inc. (NYSE: CAT) today notified employees that it is closing its plant in Owatonna and consolidating operations within its forestry business. Production will transition out of the Owatonna, Minnesota, facility by March 1, 2013. The decision will impact 100 employees. Caterpillar is offering employees at Owatonna a severance package and will work with appropriate agencies on outplacement services.
“We value our employees’ contributions, and these actions are not a reflection of them, but rather the result of a need to make our business more efficient and competitive,” said John Carpenter, president of Caterpillar’s Forest Products Division. “We understand these decisions will be difficult for the lives of many of our workers and their families, and we genuinely regret that. In addition to working with local agencies on outplacement services, we’re also partnering with potential area employers, including other nearby Caterpillar plants, to host job fairs for impacted workers.”
Minnesota government agencies and other officials were notified of this decision under the United States Department of Labor’s Worker Adjustment and Retraining Notification Act (WARN).
Some engineering work will remain in the Owatonna area. Forest products made in Owatonna will transition to other Caterpillar Forest Products plants in Prentice, Wisconsin, and LaGrange, Georgia.
About Caterpillar: For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2011 sales and revenues of $60.138 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.
Forward-Looking Statements Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,” “estimate,” “will be,” “will,” “would,” “expect,” “anticipate,” “plan,” “project,” “intend,” “could,” “should” or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and we do not undertake to update our forward-looking statements.
Caterpillar’s actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets we serve; (ii) government monetary or fiscal policies and infrastructure spending; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) our and our customers’, dealers’ and suppliers’ ability to access and manage liquidity; (v) political and economic risks and instability, including national or international conflicts and civil unrest; (vi) our and Cat Financial’s ability to: maintain credit ratings, avoid material increases in borrowing costs, and access capital markets; (vii) the financial condition and credit worthiness of Cat Financial’s customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) international trade and investment policies; (x) challenges related to Tier 4 emissions compliance; (xi) market acceptance of our products and services; (xii) changes in the competitive environment, including market share, pricing and geographic and product mix of sales; (xiii) successful implementation of capacity expansion projects, cost reduction initiatives and efficiency or productivity initiatives, including the Caterpillar Production System; (xiv) sourcing practices of our dealers or original equipment manufacturers; (xv) compliance with environmental laws and regulations; (xvi) alleged or actual violations of trade or anti-corruption laws and regulations; (xvii) additional tax expense or exposure; (xviii) currency fluctuations; (xix) our or Cat Financial’s compliance with financial covenants; (xx) increased pension plan funding obligations; (xxi) union disputes or other employee relations issues; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) compliance requirements imposed if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards; (xxv) failure or breach of IT security; (xxvi) adverse effects of natural disasters; and (xxvii) other factors described in more detail under “Item 1A. Risk Factors” in our Form 10-K filed with the SEC on February 21, 2012 for the year ended December 31, 2011. This filing is available on our website at www.caterpillar.com/secfilings.
Caterpillar contact: Rachel Potts, Corporate Public Affairs 309-675-6892 309-573-3444