NEWBERRY COUNTY — Caterpillar announced Thursday its intention to close its Newberry generator plant over the next 12-18 months as it consolidates Newberry’s electric power generator set packaging facility as well as Ridgeway’s generator set control panel assembly facility into existing facilities elsewhere.
The work will be consolidated into existing Caterpillar engine facilities in Seguin, Texas, Lafayette, Indiana, and Griffin, Ga. The consolidation is a part of cost reduction for the company, the company said in an official statement released to the news media. Employees were told about the closure on Thursday.
Local government officials said their main concern right now will be two-fold: getting another industry into the facility and helping the employees.
“Newberry County’s first concern at this time is for the employees and their families,” County Administrator Wayne Adams said. “We will be working with the appropriate state agencies concerning various forms of assistance for these workers, including unemployment and worker training benefits, as well as assistance in seeking new jobs.”
Mayor Foster Senn expressed his pride in the products made at the Newberry Caterpillar plant, but also his sadness in its closing.
“We have been proud to be the home of the Caterpillar factory and are really sorry to learn that it will be closing,” Senn said. “I see a lot of the Caterpillar generators that are made in Newberry, in many different places, including around South Carolina. I am proud to know that those quality generators are made in Newberry. We feel bad for the employees. There is a really good work force at Caterpillar and they will be good employees for another company down the road. They are good at making quality products.”
The Caterpillar facility provides 325 jobs, making it one of Newberry County’s largest employers. The company is also the third-largest taxpayer in the county, providing $1.2 million in annual property tax revenue for school and county purposes.
Caterpillar rolled its first product off the assembly line on April 5, 2006, about six months after it was announced it would be moving into the building, which had sat vacant for several years after it was built. It employed 50 people when it first opened.
Buddy Livingston, chairman of Newberry County Council, expressed county council’s concern for the workers in the wake of Thursday’s announcement.
“An announcement of this kind hurts on many levels, but no one is impacted more than the workers and their families. Right now, they should be the primary focus,” he said.
Adams said the county is ready to assist Caterpillar in finding a new tenant for its facility, with hopes that it will house new job opportunities for Newberry County residents in the near future. Senn added that I-26 is a great location, and he knows the county will be working to market it, and City of Newberry will do whatever they can to help.
“There is no way to overstate the impact of this closure on our community, but in the long run Newberry County will recover,” said Rick Farmer, director of Economic Development. “We have a pro-business leadership, modern infrastructure, and a quality workforce. On top of that, Newberry County is an attractive place for companies to do business.”
The closing of the Newberry plant will be one of five facility closures as well as a building demolition by Caterpillar. The closures will result in a reduction of about 820 positions nationwide.
The final transition for the consolidation is expected to be completed within the next 12-18 months.
Since Sept. 24, 2015, restructuring has resulted in the elimination of approximately 5,300 positions through the first quarter of 2016. Including Thursday’s announcements, the company has announced the closure or consolidation of about 20 facilities, which represents about 7 percent reduction of square footage.
“These decisions enable the company to be more efficient and better utilize its manufacturing assets. Caterpillar recognizes these restructuring actions are painful for its dedicated workforce, their families and the impacted communities. The decisions are difficult, however, it is necessary to have the right capacity in place for the tough market conditions the company is facing,” the company said in a statement.