Caterpillar to axe 700 jobs at Larne plant

Around 700 jobs are to go at Caterpillar's Larne plant as part of plans to ensure a competitive future for the firm.

The economy minister says the potential loss of 700 jobs at Caterpillar would be a "devastating blow" for Northern Ireland's economy.

Diane Dodds was speaking after the US manufacturer on Thursday announced plans to cut the posts at its plant in Larne, Co Antrim.

It's expected to be completed within 18 months and is designed to ensure the competitive future of the firm.

"The redundancies arising from the announcement by Caterpillar today are hugely disappointing," the minister said.

"The situation has arisen as a result of a decision made by Caterpillar at corporate level. The announcement and potential job losses are not directly related to Brexit or Covid-19."

Ms Dodds said Caterpillar has invested £135m in Northern Ireland since 2000.

"The company has clearly stated their announcement is not a closure announcement," she continued.

"I have confidence in NI’s capability and that the Caterpillar operation will continue to be a key contributor to the manufacturing and engineering base in Northern Ireland.

"Invest NI will work with the Caterpillar Senior Management Team to mitigate potential impact on the Northern Ireland operation."

Caterpillar is a world-leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

Joe Creed, vice president of Caterpillar's Electric Power Division, said: "We recognise that what we are considering is difficult for our employees, their families and the community."

Caterpillar currently employs around 1,600 people in Northern Ireland.

In a statement, the company said the changes would predominantly affect operations in Larne, as the plan would include a relocation of a portion of that work and engineering activities to other Caterpillar facilities.

The company is also considering the sale of the Millennium offices building located in the Springvale Business Park, relocating the remaining employees to the Larne plant.

The announcement is part of the company's ongoing plans to better utilise existing capacity and improve cost competitiveness.

It says the move is unrelated to Brexit, Covid-19 or the end of furlough schemes.

Caterpillar says next steps include providing redundancy packages to the affected employees, as well as considering outplacement services.


Local support for axed workers:

MP for East Antrim, Sammy Wilson, took to social media to state his support for the affected workers.

In a tweet he said: "This is a devastating blow for the workers and their families. I will engage with the Economy Minister and Mid and East Antrim Borough Council to identify the supports which can be put in place for workers at this difficult time."

Mayor for Mid and East Antrim Borough Council, Peter Johnson said workers have the council's full support.

He said: "We are working closely with the firm and will be doing everything within our powers to help and support everybody affected by this announcement."


'Scandalous profit grab'

The Union Unite branded the announcement as a 'devastating blow' to Northern Ireland manufacturing and the Larne area economy.

Unite claim that the move is a 'scandalous profit grab' at the expense of local workers, as production is set to be outsourced to India.

They've called for urgent action from Stormont to ensure jobs are safeguarded.

Unite Regional Officer George Brash said: “This is a scandalous decision geared only to increase further the company’s corporate profits.

"We understand that much of the production being lost is to be outsourced to India. Last year the company posted profits of more than $17 billion dollars but clearly that is not enough. They are seeking to make even more money at the cost of their workforce in Northern Ireland.