Caterpillar, Marine, Renewables

Caterpillar announces new division in restructuring plan

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Caterpillar has announced that it will amalgamate its Electric Power and Marine & Petroleum Power Divisions to form a the new Electric Power, Marine and Oil & Gas Division in response to market conditions.

In addition the US corporation announced that Steve Niehuas, currently vice president of the Electric Power Division will retire after 27 of service.

The move is not unexpected asCaterpillar logo in its fourth-quarter report last month, it said the outlook for 2016 “does not anticipate improvement in world economic growth or commodity prices.”

“As with any organizational change, there may be opportunities for us to better collaborate and work more efficiently where processes and functions are duplicated. We’ll evaluate those in the coming months,” said spokeswoman Rachel Potts, a Caterpillar spokesperson. The company did not give details on any job cuts.

The company has closed plants and reduced its workforce in a restructuring announced last year as it copes with global weakness in construction and mining, soft commodity prices and slowed demand for heavy machinery.