Caterpillar on Friday informed employees that the company is closing three Illinois plants, consolidating production and distribution operations to its facility in Menominee, Michigan.
Two plants in Sterling will be shuttered, and one in Dixon, affecting approximately 170 workers.
The company says the decision was made after a study of its operation in Sterling and Dixon, which are Anchor Coupling facilities, which is a wholly owned subsidiary of Caterpillar Inc.
"This decision is not about the performance of these plants, but rather about improving efficiency across the component manufacturing footprint and reducing the cost structure driven by three independent facilities, while providing the highest quality products to our customers," said Caterpillar's Greg Folley.
The plants affected will ramp down production beginning in the fourth quarter of 2014, with the final transition to be completed in the first quarter of 2015.