Caterpillar has said that it is to close its Canadian tunnel boring machine (TBM) factory in mid-2014, although it will continue to support customers using its products until 2016.
“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,” said Cat group president with responsibility for customer and dealer support Stu Levenick.
Caterpillar Tunnelling Canada Corporation (CTCC) was formed when Cat bought TBM manufacturer Lovat in 2008.
“As a result of the evaluation process, we have elected to exit the business,” said Levenick.” 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.”
Closure of the factory will affect 330 employees.
Cat has said that it will honour current contractual obligations to existing customers and continue to provide parts and service support until 2016.