Caterpillar will close the Caterpillar Tunneling Canada Corporation tunnel boring machine (TBM) business in Toronto, Canada, and does not plan to relocate production to another facility. The closure will affect 330 employees.
Caterpillar acquired the former Lovat TBM factory in mid-2008.
"The company has since determined the business no longer represents a strategic growth opportunity,” Caterpillar Group President Stu Levenick said in a statement. "We continuously evaluate our strategic portfolio to ensure alignment with our long-term strategy and have concluded the tunnelling business no longer fits that strategy. As a result, we have elected to exit the business. We know this is difficult news for our employees and their families. We acquired a great team when we bought this company, and while they have demonstrated an ability to build quality products, the future prospects of this business no longer align with our expectations."
The plant is expected to stop production in mid-2014, with customer service support and parts available through 2016.