Caterpillar to abandon tunnelling business
3 May 2013Caterpillar Tunneling Canada Corporation (CTCC) revealed last night that it will exit the tunnelling business and cease all production by mid 2014. The company was created following Caterpillar’s purchase of Lovat in 2008. Caterpillar said the enterprise no longer represented a “strategic growth opportunity”.
The company said it will honour contractual obligations to customers including after sales support, and would provide parts and service support up to 2016. Its 330 employees are receiving a severance package.
Stu Levenick, Caterpillar group president said: "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.
"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."
