Construction and mining equipment giant Caterpillar Inc. (CAT), Friday said it will build a $200-million plant near Athens, Georgia to manufacture small track-type tractors and mini hydra. The facility is expected to employ 1,400 people.
"The decision to shift production from Japan to the United States is driven by the proximity to a large base of customers in North America and Europe," said Mary Bell, vice president of Caterpillar's building construction products division.
These machines are currently made at Caterpillar's Sagami, Japan, facility. Once the transition to the new facility in Athens is completed, the Sagami plant will continue to serve a key strategic role in Caterpillar's global growth strategy as a high-tech component facility, the company said in a statement.
The company also plans to have an on-site product distribution center for small track-type tractors and mini hydraulic excavators produced at the new facility.
"The Athens site was selected from among dozens of locations considered due to its proximity to the major ports of Savannah and Charleston....," Bell added.
Apart from the 1,400 direct jobs, the new one-million-square-foot plant is expected to create additional 2,800 full-time jobs in the US among suppliers and at other non-Caterpillar companies that will support the new facility.
Caterpillar expects to break ground in the first quarter of 2012, and to be fully operational in around five years.
CAT is currently trading on the NYSE at $113.57, down $0.39 or 0.34%.
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