PEORIA — Caterpillar Inc. plans to shutter three component production facilities in Illinois, affecting about 170 jobs in Sterling and Dixon, moving the work to a similar facility in Michigan.
The sites, all Anchor Coupling facilities — a wholly owned subsidiary of Caterpillar — make or distribute hydraulic hose assemblies for both Caterpillar and other equipment manufacturers. The work will be moved to an existing site in Menominee, Mich., in an attempt to cut costs and boost efficiency, the company said in a Friday afternoon news release.
“You’ve got three facilities spread out across two (locations) in Illinois that are doing essentially, primarily the same work as one facility is doing in Menominee,” company spokeswoman Rachel Potts said by phone Friday.
Combining them in the site about an hour northeast of Green Bay, Wis., will allow the company to eliminate some “redundancies in management structures” and internal logistics costs that come from having the work spread out over four locations, she said.
Production at the Illinois plants — one in Dixon and two in Sterling — will be slowed during the fourth quarter this year, and complete the consolidation in the first quarter of 2015, the company said in a news release.
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