Caterpillar Inc. has announced that it is opening a consultation process for the restructuring of its Electric Power Division operations in Northern Ireland which could see the loss of up to 700 jobs here.
It said the move supports the company’s ongoing plans to "better utilize existing capacity and improve cost competitiveness".
The contemplated changes would predominantly affect operations in Larne as the plan would include a relocation of a portion of that work and the relocation of some engineering activities to other Caterpillar facilities.
The company is also considering the sale of the Millennium offices building located in the Springvale Business Park, relocating the remaining employees to the Larne facility.
The company said this announcement is not a closure of Caterpillar’s operations in Northern Ireland, but "a strategic evaluation to make a more efficient use" of its manufacturing footprint.
It added that is has the intention to provide severance packages to redundant employees and consider outplacement services from appropriate agencies to ensure they have support during this transition.
Joe Creed, Caterpillar vice president of the Electric Power Division said: “We recognize that what we are considering is difficult for our employees, their families and the community.
"We do not take these contemplations lightly, however, we must plan for future business needs to be competitive."
Consultation on intended actions will occur with representative groups for the hourly and salaried workforce.
During the consultation process, Caterpillar said it is committed to ongoing communication with employees to provide more information on the proposed changes.
If finalised, the transition could begin this year and would be expected to be completed in the next 12 to 18 months.
