Caterpillar To Increase Manufacturing Capacity in India

June 27, 2008
The company will invest $200 million in expanding engine and machinery production.

Caterpillar announced on June 26 a $200 million investment to increase its increase manufacturing capacity in India. The announcement to increase engine and machinery production in India was made during a visit to Caterpillar's India facilities by Caterpillar CEO Jim Owens.

"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 Asia-Pacific region, an area that is critical to Caterpillar's 2010 and Vision 2020 goals."

Caterpillar will significantly increase production for off highway trucks made at its facility near Chennai which are used for coal and other mining applications in India. Production will also expand at the engine production plant in Hosur where the 3508 engine is produced. These engines will be used primarily in off highway trucks produced by Caterpillar in India. The company is also investing in increased India production capability for backhoe loaders. The backhoe loader is the most widely used construction machine in India, and Caterpillar has already more than quadrupled production of backhoe loaders in country in recent years.

The company is also studying increasing its range of products made in India, with the possibility of building additional manufacturing facilities to meet demand for other earth-moving products.

"This increased capacity will help Caterpillar serve customers in India and Asia-Pacific with world-class machines and engines produced in the region and serviced by our unmatched dealer organization," said Tom Bluth, Caterpillar vice president with responsibility for Asia-Pacific manufacturing operations.

Caterpillar currently manufactures off highway trucks, backhoe loaders, engines, engine components and generator sets in India. In addition, Caterpillar established an Engineering Design Center in Chennai in 2002 to provide engineering support for product design and development. Caterpillar Logistics Services India Private Ltd. in Bangalore develops logistics technologies and provides logistics services for Caterpillar in India. Together, Caterpillar and its dealers in India have nearly 4,500 employees. Due to the investment in operations and anticipated increases in its business to support a growing base of customers, Caterpillar plans to significantly increase employment in India over the next several years.

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