Good job news for central Arkansas
by January 5, 2009 11:10 am 64 views
Peoria, Ill.-based Caterpillar Inc. announced Monday (Jan. 5) it will build a $140 million manufacturing plant in North Little Rock that could employ 600 when at full production.
Gov. Mike Beebe, joined by central Arkansas economic officials, made the announcement today from the Governor’s conference room in the State Capitol.
The plant — to be located at the former Deluxe Video building and property in North Little Rock — will be the North American headquarters for Caterpillar and produce motor graders used for mining purposes.
The expansion is interesting considering that Caterpillar, the world’s largest manufacturer of construction and mining equipment, announced Dec. 22 an aggressive plan to reduce costs. The company cited “continued deterioration of conditions in many of the markets its customers serve and on-going uncertainty in credit and financial markets” as reasons to cut executive pay and offer numerous voluntary separations to managers and management support staff. Temporary factory shut downs were also part of the cost-cutting measures announced Dec. 22.
But on Monday, Caterpillar’s North American general manager Jon Harrison told the audience at the Governor’s conference room, “This will be the jewel in Caterpillar’s crown.”
“Moving motor grader production to North Little Rock is part of Caterpillar’s long-term, strategic plan to increase its mining truck capacity in Decatur, Illinois and drive greater focus on improving motor grader production,” Harrison said.
The factory should be operational in 2010. No salary or wage information was disclosed at the press conference.