Caterpillar said on Tuesday it would move its global headquarters to the Chicago area from Peoria, Illinois later this year to move closer to a global transportation hub and make it easier to recruit executives.
The company said a limited number of senior executives will move into leased office space beginning in 2017.
About 300 workers, including some positions moved from Peoria, will be based at the new location once it becomes fully operational, Caterpillar said.
The company did not specify the exact location of its new headquarters.
“Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently,” Chief Executive Jim Umpleby said.
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Caterpillar (CAT), the world’s largest construction and equipment maker, said it will not build the previously announced headquarters complex in Peoria.
The company cut 12,300 jobs in 2016, including 7,700 in the United States. Caterpillar is also considering closing two major production facilities, including one in Aurora, Illinois.
Caterpillar shares were down 1.1% at $95.27 in the morning trading session.