STERLING – Caterpillar, which owns Anchor Coupling plants in Sterling and Dixon, will consolidate and move the plants to Michigan.
In early May, the company announced plans to consolidate the plants, but didn't say where it was considering relocating operations, other than the possible locations were in North America.
In meetings today, Caterpillar told employees at the Sauk Valley plants that production and distribution operations would be moved to the Anchor Coupling facility in Menominee, Michigan.
Closing the Sauk Valley plants will affect about 170 full-time employees, according to a Caterpillar new release.
The decision was made after a yearlong consolidation study by Caterpillar.
The local plants will begin to "ramp down production" in the fourth quarter of this year, the release said, and are expected to be closed in the first quarter of 2015.
Employees who lose jobs will receive severance packages, according to the release.
Anchor Coupling is at 2910 W. LeFevre Road and 1005 Commerce Drive in Sterling and 1100 Anchor Road in Dixon.
The company is a manufacturer and supplier of hydraulic hose assemblies.