Cat seeing strong demand for remanufactured drivetrain components.
Caterpillar earlier this week said it will expand its remanufacturing facility in West Fargo, N.D.
The company said it needs the extra capacity to meet growing demand for remanufactured drivetrain components for large off-highway trucks and other mining equipment.
Caterpillar is seeing strong demand for remanufactured final drives, transmissions, torque convertors and steering clutches.
The $50 million expansion will include 225,000 square feet of additional production space for high-tech machining and metal additive processes as well as a metallurgical lab.
The expansion also will increase the facility's production of new and remanufactured piece parts and advanced-wear coatings, according to Caterpillar.
Caterpillar expects to begin the expansion project this month, and expects to finish in June 2012.
When the additional production space is operational, Caterpillar said it will add 250 workers over a three-year period, bringing its employment ranks to 550 in West Fargo.
"Remanufacturing is an attractive, growing and sustainable industry," said Greg Folley, Caterpillar vice president with responsibility for the Remanufacturing & Components Division.
"Together with our remanufacturing facilities in Singapore and Shrewsbury, United Kingdom, we can now provide our mining customers drivetrain products with an unprecedented combination of availability, cost savings and support."
Caterpillar's remanufacturing operations return end-of-life components to "same-as-when-new" condition in terms of reliability, durability and performance.
