CATERPILLAR’S operation in the north significantly cut its losses last year, but still managed to lose £8.6 million in the 12 months to December 31 2018.
The business, which was formerly known as FG Wilson, makes diesel fuelled generator sets at plants in Larne and at Springvale in west Belfast.
Last year its workforce increased to around 1,661. It followed a steady cut to staff levels here, which had stood at just under 3,000 people in 2011.
In recent years the US giant has closed its factory in Monkstown and sold part of its Springvale site. In 2016 it announced plans to cut 250 jobs.
In September this year, staff in Belfast were informed that around 100 jobs could go as a result of a decision to outsource some of its financial services to the Accenture Group.
But while staff were briefed of the plans just over two months ago, the latest company report states: “The expected outcome from this process has not yet been determined.”
The latest published accounts into the state of Caterpillar’s business here found a slight improvement on its 2017 performance, when it posted a pre-tax loss of £21m.
The company’s turnover rose 14 per cent to £509.3m in 2018, but costs also continued to rise.
Productivity appeared to improve during the 12 months to December, with Caterpillar producing 10,153 generator sets, up from the 9,233 manufactured in 2017.
In a report accompanying the Caterpillar (NI) Limited accounts, the firm’s directors said the increase in 2018 turnover was down to an expansion of activity around focused components at the Springvale site.
The company said that increase in activity was the driver for fresh recruitment in west Belfast.
While the Larne plant is where the generator sets are designed and manufactured, the west Belfast operation has traditionally focused on the axles and transmission side of the business.
Springvale has also been the base for an administrative support centre.
Assessing its 2018 performance, Caterpillar’s directors said: “The company’s generator business faced challenging market conditions and profitability continued to be impacted by additional costs associated with the consolidation of manufacturing activities into the Lane manufacturing site.
“These costs are expected to reduce significantly in 2019 and management are also anticipating efficiency gains from the consolidation to materialise in the next 12 months.”
The company also reiterated its preference for “maintaining unrestricted access to and from the EU Single Market for goods and services and continuing close regulatory alignment.”
