Caterpillar Plans to Shift Some Production to North America (CAT)

Caterpillar Inc. (NYSE: CAT) today announced that it is planning to shift production of small construction machinery from Japan to a new plant in North America. The planned move is expected to create more than 1,000 jobs in the U.S.

Caterpillar, which is engaged in the manufacturing of construction and mining equipment, did not identify the location for the new plant. The planned move is part of a strategic decision to move production closer to the majority of customers who use these products.

The new facility in North America will become the company’s global source for small track-type tractors. The new facility will also provide completed mini hydraulic excavators for customers in North and South America. Additionally, the company is also planning to export partially assembled mini excavator base units to a plant in Europe. The new facility will be part of Caterpillar’s Building Construction Products division.

Mary Bell, Vice President of the Building Construction Products division, said that the markets for smaller track-type tractors and mini hydraulic excavators have evolved significantly in the past 30years, with the majority of customers now located in North America and Europe. Bell added that producing these machines at North American location will put the company in the best position to serve its customers in the building construction industry.

Caterpillar also announced today that it is planning to build a mining truck facility in Indonesia and to invest to increase capacity at its large mining truck facility and large-type tractor facility in the U.S.

The capacity expansion plans were announced by Caterpillar Chairman and CEO Doug Oberhelman and Group President Rich Lavin at the 2011 Asia-Pacific Economic Cooperation Summit (APEC). Speaking at the summit, Oberhelman said that it is important that the company announced its latest growth plans for mining at the APEC summit because much of the global demand for commodities today is being driven by the positive economic growth and development that is taking place in growth markets of Asia Pacific region.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.