Caterpillar Tunneling Canada Corporation (CTCC) today notified employees that it will exit the business and cease production at its facilities by mid 2014. Caterpillar purchased Lovat Inc., which is known today as CTCC, in 2008, as its entry into the tunnel boring business. The company has since determined the business no longer represents a strategic growth opportunity.
“We continuously evaluate our strategic portfolio to ensure alignment with our long-term strategy and have concluded the tunneling business no longer fits that strategy,” said Stu Levenick, Caterpillar group president with responsibility for Customer & Dealer Support. “As a result, we have elected to exit the business. We know this is difficult news for our employees and their families. We acquired a great team when we bought this company, and while they have demonstrated an ability to build quality products, the future prospects of this business no longer align with our expectations.”
The decision will impact approximately 330 employees. CTCC is offering its employees a severance package and will work with appropriate agencies on outplacement services.
CTCC will honor current contractual obligations to existing customers, including the assurance that after-sales support needs are satisfied. Caterpillar has committed to provide parts and service support through 2016.