Peoria, IL, United States (AHN) – Caterpillar, the world’s largest manufacturer of construction and mining equipment, will remain headquartered Illinois despite a temporary income tax hike in the state.

Chief executive Doug Oberhelmam told reporters in Peoria on Tuesday that Caterpillar is “here to stay.” He met earlier with Ilinois Gov. Pat Quinn, who came under fire last month after the company warned that it may leave the state due to a changing business climate.

In his letter, Oberhelman warned the governor that the tax increase will cost Caterpillar workers $40 million a year, and that other states were wooing the company to relocate.

Republicans and union members raised concerns after the letter was leaked. But the governor, who raised the income tax to address an $8 billion budget deficit, failed to assuage critics with his simple declaration that the company would remain in the state.

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