COMPANY NEWS Caterpillar to phase out of tunneling business 02 May 2013
Shani Wallis, TunnelTalk
- Almost five years to the day of buying into the business, Caterpillar has announced that it is to phase out of civil tunneling.
Caterpillar to back away from TBMs
- A news release from the company states that Caterpillar Tunneling Canada Corporation (CTCC) notified employees today that it will exit the business and cease production at its facilities by mid-2014.
- It was in April 2008 that Caterpillar purchased Lovat Inc of Canada as its entry into the tunnel boring business. The official news release explains that the company has since determined the business no longer represents a strategic growth opportunity.
- "We continuously evaluate our strategic portfolio to ensure alignment with our long-term strategy and have concluded the tunneling business no longer fits that strategy," said Stu Levenick, Caterpillar group president with responsibility for Customer & Dealer Support. "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 decision will impact approximately 330 employees. CTCC is offering its employees a severance package and will work with appropriate agencies on outplacement services.
- CTCC has confirmed that it will honor current contractual obligations to existing customers, including the assurance that after-sales support needs are satisfied. Caterpillar has committed to provide parts and service support through 2016.
A powerful partner for pushing forward - TunnelTalk, April 2008
Name change completes LOVAT acquisition - TunnelTalk, February 2011
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