Caterpillar announced it will locate a limited group of senior executives and support functions in the Chicago area later this year and reaffirmed the ongoing importance of its presence in Peoria and Central Illinois.

?Caterpillar?s Board of Directors has been discussing the benefits of a more accessible, strategic location for some time,? said Jim Umpleby, CEO, Caterpillar Inc. ?Since 2012, about two-thirds of Caterpillar?s sales and revenues have come from outside the US. Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently.?

As a result of continuing challenging market conditions and the need to prioritise resources to focus on growth, Caterpillar will not build the previously announced headquarters complex in Peoria. The current headquarters building will continue to be used for Caterpillar offices.

Once the new location is fully operational, Caterpillar expects about 300 employees to be based there, which includes some positions relocated from the Peoria area.