Caterpillar, the world's largest manufacturer of construction equipment, will build a factory in China to produce mini hydraulic excavators, the company said on Sept. 29.
Construction will begin in Wujiang, near Shanghai, at the end of 2010 and the facility should be ready in 2012 to begin production of mini excavators of less than eight tons.
Caterpillar did not say how much the project will cost.
It is part of a long-term plan for investments in China that will make Caterpillar one of the leading manufacturers of construction equipment in the country.
"China is the world's largest market for excavators in the below eight ton class, and the development of this new facility will better position Caterpillar to provide our customers in China with solutions that will help them succeed," said Mary Bell, a Caterpillar vice president.
Caterpillar already has a factory in Xuzhou, which is also near Shanghai.
The company, which is headquartered in Peoria, Illinois, had sales and revenue of $32.4 billion in 2009.
Copyright Agence France-Presse, 2010