REG-Caterpillar Inc: Caterpillar Intends to Reallocate Gosselies Volumes <Origin Href="QuoteRef">CAT.N</Origin>

CaterpillarAnnouncement

02/09/2016 08:25

Caterpillar contemplates allocation of production from Gosselies, Belgium, to
other manufacturing facilities

PEORIA, Ill., Sept. 2, 2016 -- Caterpillar Inc. (NYSE: CAT) today announced it
is contemplating to allocate the volumes produced at its facility in
Gosselies, Belgium, to other manufacturing facilities. The Gosselies plant
primarily manufactures construction equipment. This announcement starts an
information and consultation process, which could result in the closure of the
Gosselies site and a collective lay-off. This announcement is in connection
with the global restructuring and cost savings plan announced in September
2015.

Following extensive review, Caterpillar is contemplating to allocate the
volumes that are produced at the Gosselies facility to the manufacturing
facility in Grenoble, France, and to other manufacturing facilities outside
Europe. It is also contemplated to allocate component production to external
suppliers and other Caterpillar facilities and to consolidate support
functions to other sites. If this intention would be confirmed, it would
result in a collective lay-off of about 2,000 employees and in the closure of
the Gosselies site.

"We have to contemplate actions to reduce manufacturing capacity and take
operating costs out of our business to align with lower demand. Should the
intention be confirmed, we will support the local leadership in order to
mitigate the impact on our employees, their families and the communities where
we're located," said Tom Pellette, group president with responsibility for
Construction Industries.

During the upcoming information and consultation process, Caterpillar is
committed to comply with the applicable laws and to engage in a constructive
dialogue with the employee representatives in order to minimize the social
impact.

About Caterpillar
For 90 years, Caterpillar Inc. has been making sustainable progress possible
and driving positive change on every continent. Customers turn to Caterpillar
to help them develop infrastructure, energy and natural resource assets. With
2015 sales and revenues of $47.011 billion, Caterpillar is the world's leading
manufacturer of construction and mining equipment, diesel and natural gas
engines, industrial gas turbines and diesel-electric locomotives.  The
company principally operates through its three product segments - Construction
Industries, Resource Industries and Energy & Transportation - and also
provides financing and related services through its Financial Products
segment. For more information, visit caterpillar.com
(http://www.caterpillar.com/).  To connect with us on social media, visit
caterpillar.com/social-media (http://www.caterpillar.com/social-media).

Forward-looking Statements
Certain statements in this press release relate to future events and
expectations and are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Words such as "believe,"
"estimate," "will be," "will," "would," "expect," "anticipate," "plan,"
"project," "intend," "could," "should" or other similar words or expressions
often identify forward-looking statements. All statements other than
statements of historical fact are forward-looking statements, including,
without limitation, statements regarding our outlook, projections, forecasts
or trend descriptions. These statements do not guarantee future performance,
and we do not undertake to update our forward-looking statements.

Caterpillar's actual results may differ materially from those described or
implied in our forward-looking statements based on a number of factors,
including, but not limited to: (i) global and regional economic conditions and
economic conditions in the industries we serve; (ii) government monetary or
fiscal policies and infrastructure spending; (iii) commodity price changes,
component price increases, fluctuations in demand for our products or
significant shortages of component products; (iv) disruptions or volatility in
global financial markets limiting our sources of liquidity or the liquidity of
our customers, dealers and suppliers; (v) political and economic risks,
commercial instability and events beyond our control in the countries in which
we operate; (vi) failure to maintain our credit ratings and potential
resulting increases to our cost of borrowing and adverse effects on our cost
of funds, liquidity, competitive position and access to capital markets; (vii)
our Financial Products segment's risks associated with the financial services
industry; (viii) changes in interest rates or market liquidity conditions;
(ix) an increase in delinquencies, repossessions or net losses of Cat
Financial's customers; (x) new regulations or changes in financial services
regulations; (xi) a failure to realize, or a delay in realizing, all of the
anticipated benefits of our acquisitions, joint ventures or divestitures;
(xii) international trade policies and their impact on demand for our products
and our competitive position; (xiii) our ability to develop, produce and
market quality products that meet our customers' needs; (xiv) the impact of
the highly competitive environment in which we operate on our sales and
pricing; (xv) failure to realize all of the anticipated benefits from
initiatives to increase our productivity, efficiency and cash flow and to
reduce costs; (xvi) additional restructuring costs or a failure to realize
anticipated savings or benefits from past or future cost reduction actions;
(xvii) inventory management decisions and sourcing practices of our dealers
and our OEM customers; (xviii) compliance with environmental laws and
regulations; (xix) alleged or actual violations of trade or anti-corruption
laws and regulations; (xx) additional tax expense or exposure; (xxi) currency
fluctuations; (xxii) our or Cat Financial's compliance with financial
covenants; (xxiii) increased pension plan funding obligations; (xxiv) union
disputes or other employee relations issues; (xxv) significant legal
proceedings, claims, lawsuits or government investigations; (xxvi) changes in
accounting standards; (xxvii) failure or breach of IT  security; (xxviii)
adverse effects of unexpected events including natural disasters; and (xxix)
other factors described in more detail under "Item 1A. Risk Factors" in our
Form 10-K filed with the SEC on February 16, 2016 for the year ended December
31, 2015.

SOURCE: Caterpillar Inc.

CONTACT: Erik De Leye, Global Government & Corporate Affairs, Office: +32 2
550 35 37, Mobile: +32 475 691 799, De_Leye_Erik@cat.com or Rachel Potts,
Global Government & Corporate Affairs, Office: 309-675-6892, Mobile:
309-573-3444, Potts_Rachel_A@cat.com, both of Caterpillar



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