Caterpillar rules Ill. out of factory plans

CHAMPAIGN – Caterpillar has ruled Illinois out of plans to relocate a factory and 1,400 jobs from Japan, citing both logistical problems with building the plant in its home state and ongoing concerns about the business climate.

Caterpillar laid out its decision Tuesday in an email to elected leaders in Peoria County, saying it considered factors such as access to ports and local labor markets, as well as proximity to Caterpillar’s building and construction products division headquarters in Cary, N.C.

But the email, signed only by the Peoria-based company’s North American Facility Site Selection Team, says Caterpillar’s longstanding complaints about Illinois’ budget deficit were a factor.

“Understand that even if your community had the right logistics for this project, Caterpillar’s previously documented concerns about the business climate and overall fiscal health of the state of Illinois still would have made it unpractical for us to select your community for this project,” the email says.

Caterpillar CEO Doug Oberhelman last year complained to Gov. Pat Quinn about the state’s business climate after Illinois raised income taxes. Oberhelman noted Caterpillar is regularly courted by other states trying to lure away the company’s headquarters, though he later said the company has no plans to leave.

While declining to address the email, Caterpillar spokesman Jim Dugan said Wednesday that many of those concerns persist.

“It remains our desire to work collaboratively, but we’re not going to be shy about expressing our concerns about the state of the state,” Dugan said. “It needs bipartisanship, and it needs not just the governor, but the Legislature and the governor’s office to make some long-term decisions that will put the state on good fiscal footing.”