Leading construction and mining equipment manufacturer Caterpillar Inc. (NYSE: CAT) announced its plan to invest $210 million toward facility upgrades in India on Wednesday. The company’s aggressive investment strategy is aimed at increasing its production capacity for a range of products in key growth markets such as India.
The Peoria, Illinois-based heavy equipment maker plans to invest $150 million to build a new facility that will produce its Perkins branded 4000 Series engines. The exact location for the new plant has yet to be determined. CAT will also spend $62 million to improve its off-highway truck manufacturing plant in Chennai. The expansion of the truck facility in Chennai is in addition to the $108 million investment CAT announced last year.
“The Government of India has embarked on an aggressive plan to accelerate road construction and overall infrastructure development, and Caterpillar and our dealers are continuing to make investments in India to support these growth plans,” said Caterpillar Group President, Rich Lavin. “The investments we announced today will ensure that our customers have access to world class solutions to complete projects on time and at the lowest owning and operating costs.”
Currently, Caterpillar has a logistics services base, three manufacturing plants and a research and development center in India. The company’s 2010 sales and revenues reached $42 billion, making CAT the global leader in construction and mining equipment manufacturing.