POSTED: Tuesday, October 29, 2013 - 2:29pm
UPDATED: Wednesday, October 30, 2013 - 5:08am
Estimated 100 people to lose employment
Kilgore, TX (KETK) — One East Texas branch of Caterpillar, Inc. is moving operations to Kansas and Wisconsin by the end of 2013, resulting in the lay off of about one hundred people.
According to their 2013 third quarter financial release, the construction equipment company reported more than $16 billion revenue loss the previous year.
"The year has proven to be difficult," Caterpillar Chairman and Chief Executive Officer Doug Oberhelman said.
Mining is down from 2012, and the demand for equipment has not been easy to forecast, according to the company's release.
"Unfortunately, order rates have not picked up much, despite continuing strong commodity production," Oberhelman said. "That has caused us to ratchet down our sales and revenues outlook as we have moved through 2013."
The poor economic outlook as forced the closure of their plant in Kilgore.
On Tuesday, the company issued the following statement to KETK:
In Caterpillar Inc.'s 3Q financial release  on October 23, 2013, it was stated that the company has taken many actions to align our costs with the environment we're in currently. Further, we reported that while we've done much already, we're not finished and expect to take deeper actions to improve our cost structure and balance sheet.
Today (Tuesday), the company notified employees in its Kilgore, Texas, plant that following an extensive strategic review of its mining operations in Kilgore, it will close the facility to position this business to be more successful and competitive throughout the cycles in a rapidly changing mining industry. Production of dippers made in Kilgore will shift to another Caterpillar facility in Wamego, Kansas, and ballast box production will shift to our South Milwaukee, Wisconsin facility by year end. The closure will impact approximately 100 people. Caterpillar will offer eligible full-time employees a severance package and transitional support.
We recognize this will impact our workforce and their families, but after considering a number of options and alternatives, we have concluded we need to take this step to achieve a more sustainable, long-term cost structure.