June 14 (Reuters) – Caterpillar Inc (CAT.N) said on Tuesday it would move its global headquarters to Irving, Texas, from Deerfield, Illinois, marking an end to the construction equipment maker’s century-long presence in the Land of Lincoln.
Caterpillar did not say why it was making the move. It said in an emailed statement it did not seek or receive incentives for relocation.
The company is the latest big manufacturer to exit Illinois. Last month, aerospace giant Boeing (BA.N) announced it would move its corporate headquarters from Chicago to Arlington, Virginia. read more
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A company spokesperson for Caterpillar said most of its 230 employees based in Deerfield, north of Chicago, will move to the new headquarters over time.
The company will maintain its presence in Illinois, where it has more than 17,000 employees, the spokesperson said.
CAT hosted its bi-annual Investor’s Day in Grapevine, Texas, last month. The machinery maker’s electric power division operates out of its Irving office, in suburban Dallas, at present.
Texas Governor Greg Abbott said on Twitter his state is a “perfect fit for this international brand,” saying many large companies had headquarters there.
Last year, Tesla (TSLA.O), which counts California as its biggest U.S. market, moved its headquarters from California to the more politically conservative state of Texas. Musk also moved his personal residence from California to Texas, where there is no state income tax.
A wider talent pool and the generous tax breaks have been the biggest draw for companies moving to Texas, said Matt Arnold, an equity analyst at Edward Jones.
“Illinois has been losing employers based on taxation and regulations that aren’t necessarily the most friendly to businesses,” Arnold said.
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Reporting by Nathan Gomes in Bengaluru; Editing by Shinjini Ganguli, Angus MacSwan and Deepa Babington
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