Caterpillar moving headquarters to Chicago area

Markets Associated Press

  • This Jan . 25, 2017, photo shows the Caterpillar Inc. headquarters in downtown Peoria, Ill. Caterpillar announced Tuesday, Jan. 31, 2017, it is moving its headquarters to the Chicago area and won't build a new complex in its current Peoria location. (Ron Johnson/Journal Star via AP)

    This Jan . 25, 2017, photo shows the Caterpillar Inc. headquarters in downtown Peoria, Ill. Caterpillar announced Tuesday, Jan. 31, 2017, it is moving its headquarters to the Chicago area and won't build a new complex in its current Peoria location. (... Ron Johnson/Journal Star via AP) (The Associated Press)

  • In this Jan. 25, 2017, photo, Caterpillar equipment is displayed at industrial equipment supplier Altorfer Inc., in East Peoria, Ill. Caterpillar Inc. announced Tuesday, Jan. 31, 2017, it is moving its headquarters to the Chicago area and won't build a new complex in its current Peoria location. (Ron Johnson/Journal Star via AP)

    In this Jan. 25, 2017, photo, Caterpillar equipment is displayed at industrial equipment supplier Altorfer Inc., in East Peoria, Ill. Caterpillar Inc. announced Tuesday, Jan. 31, 2017, it is moving its headquarters to the Chicago area and won't build ... a new complex in its current Peoria location. (Ron Johnson/Journal Star via AP) (The Associated Press)

  • In this Jan. 25, 2017, photo, the Caterpillar logo is seen on a piece of equipment at industrial supplier Altorfer Inc., in East Peoria, Ill. Caterpillar Inc. announced Tuesday, Jan. 31, 2017, it is moving its headquarters to the Chicago area and won't build a new complex in its current Peoria location. (Ron Johnson/Journal Star via AP)

    In this Jan. 25, 2017, photo, the Caterpillar logo is seen on a piece of equipment at industrial supplier Altorfer Inc., in East Peoria, Ill. Caterpillar Inc. announced Tuesday, Jan. 31, 2017, it is moving its headquarters to the Chicago area and won'... t build a new complex in its current Peoria location. (Ron Johnson/Journal Star via AP) (The Associated Press)

Caterpillar Inc. is moving its headquarters to the Chicago area and won't build a new complex in its current Peoria, Illinois location.

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The move comes as the company faces a weak equipment market that has been cutting into its bottom line. Last week, the farming and construction equipment maker reported a wider fourth-quarter loss on charges and higher restructuring costs. It has been cutting jobs and facilities over the last several years.

"As a result of continuing challenging market conditions and the need to prioritize resources to focus on growth, Caterpillar will not build the previously announced headquarters complex in Peoria," the company said.

The company said it will locate a limited group of senior executives and support functions in the Chicago area later this year, saying it is a more strategic location. It expects about 300 people to be based at the new location.

"Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently," said CEO Jim Umpleby.

Caterpillar said the vast majority of our people will remain in central Illinois. The current Caterpillar building in Peoria, Illinois will continue to be used.