Caterpillar Announces Manufacturing Expansion For Operations in India

Logistics Insight Asia - Industry News, 21/7/2008

As part of its strategic plan to increase its manufacturing footprint in the rapidly growing Asia-Pacific region, Caterpillar Inc. recently announced a four-year, $200 million investment to 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 Chairman and Chief Executive Officer Jim Owens.

Caterpillar will invest to significantly increase production for off highway trucks made at its facility near Chennai. Those Caterpillar trucks are used for coal and other mining applications in India. The company also plans to expand engine production at its facility in Hosur, adding production of the Caterpillar 3508 engine. The 3508 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.

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.

Caterpillar, www.cat.com.