CATERPILLAR have moved to deny speculation that it is about to sell its Springvale plant as part of restructuring its North of Ireland operation.
The company, which employs around 1,600 people at sites in West Belfast and Larne, said it is opening a consultation process with production, support and management at its electric power division operations.
In a statement, Caterpillar said the move supports its ongoing plans to “better utilise existing capacity and improve cost competitiveness”. The contemplated changes would predominantly affect operations in Larne and would include a relocation of a portion of that work carried out there to other Caterpillar facilities.
Caterpillar have confirmed that the restructuring will not see the sale of their Springvale factory, however, the company are contemplating selling its office building at Millennium Way with the employees based there relocating to Larne.
SDLP Councillor Brian Heading has described the potential loss of jobs as a “devastating blow” to the local economy.
The West Belfast Councillor said: “Our first thoughts are with the staff and their families, many of whom have been told their jobs are relocating to Larne without any consultation.
“Serious questions must be asked about the support for Caterpillar from Invest NI and I will be seeking answers. It is important that the Economy Minister does all she can to support these workers and see if there is any way to save these jobs.
“It would be interesting to learn if the Minister was aware of this announcement and what action she took.
“I will be seeking an urgent meeting with Caterpillar and Invest NI to seek clarity on why this decision was announced so suddenly and if anything further can be done.”
Joe Creed, Caterpillar vice president of the electric power division said the company recognises that what they are considering is “difficult for our employees, their families and the community”.
He added: “We do not take these contemplations lightly, however, we must plan for future business needs to be competitive. Consultation on intended actions will occur with the appropriate representative groups for the hourly and salaried workforce.
"During the consultation process, Caterpillar is committed to ongoing communication with employees to provide more information on the proposed changes. If finalised, the transition could begin this year and would be expected to be completed in the next 12 to 18 months.
"The company also has the intention to provide severance packages to redundant employees and consider outplacement services from appropriate agencies to ensure they have support during this transition."
