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Caterpillar Announces Capacity Expansion Plan

Company will invest more than $1 billion from 2008 through 2010 in five existing Illinois facilities.

Caterpillar Inc. announced today a multi-year capacity expansion plan to position key factories in Illinois and other areas. In support of the proposed expansion, the company will invest more than $1 billion from 2008 through 2010 in five existing facilities in Illinois (East Peoria, Joliet, Decatur, Aurora and Mossville).

Caterpillar chairman and CEO Jim Owen said the expansion will be welcomed news for the Illinois communities in which the company operates.

"This restructuring and capital investment in critical North American operations demonstrates our optimism about the global markets we serve and Caterpillar's long-term commitment to our employees, our customers and our stockholders," Owens said.

The company's expansion plan includes contemplated operational changes that will be finalized after further study, including:

  • To support the significant off-highway truck capacity expansion, alternative locations will be explored for a U.S. manufacturing facility for motor grader production, currently located in Decatur, Ill.
  • To facilitate expanded capacity in East Peoria, Decatur and Aurora, Ill., lower power train production located in those facilities could be moved to U.S. locations to be determined.
  • To better focus on prime product opportunities for wheel loaders and excavators produced in Aurora, Ill., tube manufacturing will likely be sourced with a U.S. supplier that specializes in tube production.
  • Exploring a number of options for moving manufacturing operations into the existing facilities in Mossville, Ill.
  • Examining options to centralize engineering and design functions by locating a new machinery and engine product design center in Mossville, Ill., for large products.
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