Cat Sells 247-Acre Belgian Plant for $1.08

March 29, 2017

Caterpillar this week told  Belgian authorities the company is proceeding with its plan to shut down its factory at Gosselies, Belgium. All production is expected to end by mid-2017, and other operations will cease by the end of the year. With the closing, 2,000 employes will be discmissed.

On September 2, 2016, Caterpillar had announced it was contemplating allocation of the production at the Caterpillar facility in Gosselies, Belgium, to other manufacturing facilities.

Paul Magnette,Walloon Minister-President, said an agreement has been reached for a partial dismantling of the installations. The three main existing halls will be conserved and a quarter of the facilities should be removed to accommodate "new activities". The book value of the site (including land, buildings and equipment) is estimated after dismantling at 143 million euros.

The Gosselies plant and site covers more than 247 acres and is worth between $154 and $161 million. The site will be sold to an investement company for the Region of Wallonia for a symbolic one euro ($1.08).

"The site has a value of 150 million euros so obviously it is an excellent deal. As soon as we have found potential buyers, every time we sell off part of the site, whether for sale or for rent with a long-term lease, this will bring revenue to the Walloon Region which will allow us to continue to invest in this site," said Paul Magnette. "Our ambition is to create 10,000 jobs."

The sale is to be effective on 30 June 2018.