Caterpillar to end track drill production
First publishedon www.AggBusiness.com
Caterpillar says it is to discontinue production of track drills within its Resource Industries portfolio, and no new orders will be taken.
However, the company says it and its dealers remain committed to existing customers and will support those room and pillar and track drill fleets currently in operation.
“These moves, which align with Caterpillar’s ongoing restructuring, will allow us to focus resources on those areas of the business that provide the highest, sustainable growth and best long-term returns,” said Denise Johnson, group president with responsibility for Resource Industries.
In Denison, Texas, where track drills are produced, approximately 40 positions will be eliminated as a result of the track drill exit and other facility restructuring.
“Caterpillar remains committed to an extensive mining product portfolio. We firmly believe mining is an attractive long-term industry, and we continue to invest in a broad range of products, both surface and underground. We are targeting our investments within the mining product portfolio to concentrate on those areas with the highest profitability potential,” said Johnson.
In conjunction with the announcement, Caterpillar expects total workforce reductions of up to 155 positions associated with the room and pillar business in Houston, Pennsylvania, USA, some occurring immediately.
While the company intends to sell the room and pillar products, it will also assess other options, including a possible closure of the Houston facility.