Caterpillar is moving production of its compact machines from Japan to the US to be closer to demand in North America and the EMEA region.
The company has also announced it is moving the assembly of its larger excavators from Akashi, Japan, to a new plant in Victoria, Texas. However the move is to free up production capacity for Asian markets. The Texas plant is expected to be completed by the middle of 2012.
“The markets for smaller track-type tractors and mini-excavators have evolved significantly in the past 30 years, with the majority of customers now located in North America and Europe,” said Mary Bell, VP for Caterpillar’s Building Construction Products division. “Producing these machines at a North American location will put us in the best possible position to serve our customers in the building construction industry.”
With unemployment a major social and political issue in the US, the new plant is expected to create 1,000 new jobs. It is also spending $640 million to upgrade existing mining truck plant in East Peoria and Decatur, Illinois which will also create 300 new jobs.
“The capacity expansion announced today is in addition to our previously announced investments to support our mining business, and it demonstrates our commitment to be the leader in this strategically important industry,” said CEO Doug Oberhelman. “Beginning with capacity expansion plans announced in 2008, and once the plans are announced today are fully in place, we will have nearly tripled our worldwide large truck capacity and doubled our large track-type tractor production capabilities in East Peoria.”
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