Caterpillar has announced that it is relocating its corporate headquarters upstate to Chicago and its has scrapped previously announced plans to build a new Peoria headquarters complex.
Some 300 senior executives will relocate to Chicago, although Caterpillar will retain a substantial presence in Peoria with around 12,000 employees left behind.
“Caterpillar’s board of directors has been discussing the benefits of a more accessible, strategic location for some time,” said Caterpillar CEO Jim Umpleby. “Since 2012, about two-thirds of Caterpillar’s sales and revenues have come from outside the United States. Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently.”
He continued: “We value our deep roots in Central Illinois, and Peoria will continue to be our hometown. The vast majority of our people will remain in this important region where we have many essential facilities and functions. The new location is also an opportunity to add to our talented team while improving the productivity of our senior leaders.”
Peoria mayor Jim Ardis said: “As mayor, I never want jobs moving out of the city. However, the overwhelming majority of Caterpillar employees and their families based in the Peoria area won’t be impacted by this decision. I’m pleased Caterpillar continues to call Peoria its hometown.”
However Representative Darin LaHood, representing the 18th Congressional District of Illinois, was less phlegmatic. "I am stunned, saddened and extremely frustrated to hear the news that Caterpillar’s corporate world headquarters will abruptly be moving from Peoria to Chicago,” he said. “This is sad news for our community and our citizens. For over 92 years, Caterpillar has called Peoria home and we have embraced it with open arms. To say I am disappointed in this decision made by the board of directors would be a tremendous understatement. This, in some ways, is a betrayal of our community and in complete disregard for the hard working employees and citizens of Peoria."
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