Caterpillar is suspending development and capital investment for mining shovels that were to be manufactured at the company’s Aurora plant.
The company said the suspension was effective immediately and was done because of Caterpillar’s pending purchase of Bucyrus International, which was announced late last year.
In June 2010, Caterpillar had selected the plant in Aurora for initial production of a new line of mining shovels. "In order to conserve resources and eliminate business risks associated with internal development, Caterpillar will suspend this mining shovel-related activity," the company said in a statement.
As the Bucyrus transaction proceeds, the company will determine the resources needed for shovels. The Aurora facility will continue to focus on wheel loader production and producing excavators.
In the "unlikely" event the Bucyrus transaction does not close, Caterpillar said it will remobilize the shovel team and resume the development program as originally established.