Caterpillar to Shut Plant in Scotland, Maybe 2 in U.S.

Caterpillar Inc., the earth-moving equipment manufacturer, said today that it is closing a plant in Glasgow, Scotland, that employs 1,220 people and is considering closures in Iowa and Oregon that would affect another 1,630.

As part of a long-term retrenchment, Caterpillar will take a pretax write-off of $109 million in its fourth quarter, company spokesman Gil Nolde said.

Plant closings are contemplated in Davenport, Iowa, where 1,300 are employed, and in The Dalles, Ore., with 330 workers, “subject to discussion with the unions involved,” Nolde said. The closings would probably not occur before 1988.

Officials in Scotland expressed anger at the planned closing of the machine parts and tractor plant there, which they said was announced with no prior notice.

As recently as September, Caterpillar had promised a $92-million modernization of the plant, and the government had pledged substantial cash aid.