Caterpillar Inc has announced it is contemplating the allocation of volumes produced at its facility in Gosselies, Belgium, to other manufacturing facilities. The Gosselies plant primarily manufactures construction equipment but its range includes equpiment widely used in smaller mines such as wheel loaders, which can be used to load quarry class trucks. This announcement means the start of an information and consultation process, which could result in the closure of the Gosselies site and a collective lay-off. This announcement is in connection with the global restructuring and cost savings plan announced in September 2015.

The statement said: “Following extensive review, Caterpillar is contemplating to allocate the volumes that are produced at the Gosselies facility to the manufacturing facility in Grenoble, France, and to other manufacturing facilities outside Europe. It is also contemplated to allocate component production to external suppliers and other Caterpillar facilities and to consolidate support functions to other sites. If this intention would be confirmed, it would result in a collective lay-off of about 2,000 employees and in the closure of the Gosselies site.”

“We have to contemplate actions to reduce manufacturing capacity and take operating costs out of our business to align with lower demand. Should the intention be confirmed, we will support the local leadership in order to mitigate the impact on our employees, their families and the communities where we’re located,” said Tom Pellette, group president with responsibility for Construction Industries. During the upcoming information and consultation process, Caterpillar is committed to comply with the applicable laws and to engage in a constructive dialogue with the employee representatives in order to minimise the social impact.