Caterpillar to Expand Plant in Texas, Sees Sales Comeback in 2016

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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite a slowdown in sales of farming and construction equipment this year, Caterpillar Incorporated (NYSE:CAT) (Peoria, Illinois) plans to begin expanding its manufacturing plant for hydraulic excavators next year in Victoria, Texas, by adding CT680 and CT660 truck production lines. Bringing this new line to Texas from Escobedo, Mexico, will add about 200 new jobs to the Victoria plant.

Caterpillar, the world's largest maker of construction and mining equipment, forecasts a sales decline in 2015 due to the world economy and weak commodity prices--oil, copper, coal and iron ore--continuing to be a negative headwind. The company expects 2015 revenue to decline to about $50 billion, according to Forbes. Caterpillar's global construction equipment sales fell 16% in second-quarter 2015, according to The Wall Street Journal.

Caterpillar Chief Executive Officer Douglas Oberhelm told CNBC's Managing Asia that he expects a slow but steady recovery in the U.S., followed by Europe. Caterpillar's best field of recovery for 2016 will be in construction equipment like the new CTK2 bulldozers. Also, the newly designed vocational truck models CT680 & CT 660 are expected to be produced in 2017 at the ramped up plant in Victoria, Texas.

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