Caterpillar to move headquarters to Deerfield

DEERFIELD, Ill. -- Caterpillar Inc. has announced it is moving it corporate headquarters from Peoria, Illinois to the Chicago suburb of Deerfield.

In making the announcement Wednesday, Caterpillar CEO Jim Umpleby noted the Deerfield headquarters will be minutes from O'Hare International Airport and a convenient rail ride to Chicago.

According to the announcement, the heavy equipment maker has reached a leasing agreement at a Deerfield office park and expects to move relocated 100 employees there this year. About 300 people will be working at the new headquarters by mid-2018.

The company previously announced plans to build a new headquarters complex in Peoria. It cited a "challenging market conditions " in cancelling the plan.

The move to Deerfield comes as the company faces a weak equipment market that has been cutting into its bottom line. It has been cutting jobs and facilities over the last several years.