Cat to expand manufacturing in India

Staff Writer
Mount Shasta Herald

Caterpillar Inc. announced Thursday it will spend $200 million over the next four years to increase its manufacturing capacity in India.

The company, which said the expansion is part of its strategic plan to increase manufacturing in the fast-growing Asia-Pacific Region, said manufacturing of engines and machines will be involved.

Caterpillar Chairman Jim Owens made the announcement while visiting company facilities in India, a news release said.

"Caterpillar machines and engines are being used by our customers in India to drive sustainable development and to support economic growth in the areas of infrastructure development, commercial and residential construction, mining, power generation and energy production," Owens said.

"We are pleased to continue contributing to the growth and development of India. This additional investment demonstrates Caterpillar’s commitment to customers in India and the importance of such emerging markets as we build our proven global business model across the AsiaPacific region, an area that is critical to Caterpillar’s 2010 and Vision 2020 goals."

Caterpillar will invest to significantly increase production for off-highway trucks made at its facility near Chennai that are used for coal and other mining applications in India.

The company also will expand engine production at its facility in Hosur, adding production of the Caterpillar 3508 engine, which will be used in the off-highway trucks made in India.

Also, Caterpillar said it will increase production capability for backhoe loaders, which it described as the most widely used construction machine in India. Caterpillar has already more than quadrupled production of backhoe loaders in country in recent years, the company said.

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