The leading US venture capital company Emerson Electric has sold its entire 51 per cent holding in F.G.Wilson to Caterpillar Inc, which held the other 49 per cent. F.G.Wilson, one of the world's biggest manufacturers of diesel generators, employs around 2,000 people at factories in Larne, Monkstown, and west Belfast.

It blamed the recent 400 job losses on the strength of sterling, and the economic crisis in its markets in south-east Asia. A spokesman said that the change of ownership would make no difference to the company's day-to-day operations.

Caterpillar is based in Illinois, and is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Sales last year were in excess of $20 billion.

The company's chairman and CEO Mr Glen Barton said that being the sole owners of F.G. Wilson would increase Caterpillar's ability to serve a broader range of customers.