Caterpillar Plans $120 Million Hydraulic Excavator Plant in Texas

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Researched by Industrial Info Resources (Sugar Land, Texas)--Caterpillar Incorporated (NYSE:CAT) (Peoria, Illinois), one of the world's largest manufacturers of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines, plans to build a $120 million grassroot hydraulic excavator manufacturing plant in Victoria, Texas.

Plans are to construct a 600,000-square-foot building with the installation of supporting production equipment to manufacture state-of-the-art hydraulic excavators. The facility will triple the company's current U.S. production capacity of hydraulic excavators.

The new facility will manufacture two models currently being made in Aurora, Illinois, as well as other excavator models that are being produced in Akashi, Japan, and are currently being exported to the United States. Groundbreaking for the new facility is anticipated to begin in September. A design-build firm will be selected in October to handle design and construction for the new facility. Building construction will begin in the spring of 2011, and overall completion is slated for the summer of 2012. Approximately 500 new jobs will be created.

The Victoria, Texas, location was selected because of access to ports and other transportation, as well as a positive business climate that made the location an ideal site for the new plant.

Caterpillar currently produces two excavator models at a facility in Aurora, Illinois, where the company manufactures wheel loaders, soil and landfill compactors, wheel dozers and components. Caterpillar also produces excavators in Belgium, Brazil, China, France, Indonesia, Japan and Russia.

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