Caterpillar CEO: Other states making play for firm

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Updated: August 4, 2011 4:20PM

In a letter to Gov. Pat Quinn, the chairman of Peoria-based Caterpillar Inc. has raised the possibility of the company moving to another state because Illinois is headed in a direction that is “not favorable to business.”

Governors from at least four states have tried to woo the heavy machinery company out of Illinois, and “they make compelling arguments,” Caterpillar Chairman and CEO Doug Oberhelman noted in a March 21 letter to Quinn, in which he relayed how he had been called, cornered and “wined and dined’’ by other states.

“Before, I never really considered living anywhere else, and certainly never considered the possibility of Caterpillar relocating,” Oberhelman wrote. “But I have to admit, the policymakers in Springfield seem to be making it harder by the day.”

Oberhelman did not cite specific policies he felt were bad for business, but a Caterpillar spokesman told the Associated Press that the state’s recent income tax increase is an example.

Oberhelman has led the company since last July. He has worked for the firm since 1975.

Caterpillar is one of the Fox Valley’s largest employers, with its huge plant off Route 31 in Oswego Township. Next year the company will begin producing a line of mammoth mining shovels exclusively at that facility. The shovels, which range from 125 to 800 tons in size, could create 300 jobs between 2011 and 2014. The company estimates that 200 assembly workers and 100 support and management workers could be assigned to the shovel lines.

Quinn said he would speak with Oberhelman about the letter when he visits one of the firm’s factories on April 5. His office noted that Illinois exports jumped nearly 20 percent last year, and said Illinois was fourth in the nation — and first in the Midwest — in job creation last year.

“Mr. Oberhelman’s letter is representative of the collaborative business environment Gov. Quinn has fostered in Illinois,” Quinn’s office said.

“The governor welcomes frank and open exchanges between the business community and government, and we are always open to new ideas that can help our businesses grow, innovate and create jobs.”

Dave McKinney contributed to this story.