Caterpillar has decided not to build a new North American manufacturing plant in Illinois, its home state. According to an article published in the Peoria Journal Star, the company will focus on an area near its existing facility in Cary, N.C., which houses its small-machine business.
The newspaper obtained a copy of the letter sent to officials in Peoria County, which cites the continuing unfavorable business climate in Illinois as a factor in the decision.
Last year, Governor Quinn substantially raised corporate tax rates by nearly 50 percent in an effort to reduce the state's budget deficit. Recent news reports indicate that the budget has grown instead, with the state comptroller saying it's approaching $8.5 billion.
The new facility is expected to being more than 1,000 jobs and will build small tractors and mini excavators.