Robert Brooks

Caterpillar Inc. will build a $150-million diesel engine manufacturing plant in India to produce its Perkins 4000 Series engines for off-highway trucks. In addition, the OEM said it will expand capacity at its truck plant at Chennai, India, a $70-million project that adds to a $108-million expansion of that same plant, announced last year.

The total announced for new investments is $210 million. Caterpillar said a site-selection process is underway for the new Perkins engine plant. India is one of the markets the company has prioritized for its investments to increase its global manufacturing capacity by 2015.

"As our earlier investments in India have neared completion, Caterpillar is moving rapidly to respond to market conditions in India and to make these additional new investments," the company’s ASEAN country manager Kevin Thieneman explained. "This new investment will play a role in developing our technology further while benefiting our customers who are playing a vital role in the transformation of the Indian economy," Thieneman added.

Caterpillar group president Rich Lavin also linked the new investments to India’s efforts to improve its roads and infrastructure. "The government of India has embarked on an aggressive plan to accelerate road construction and overall infrastructure development, and Caterpillar and our dealers are continuing to make investments in India to support these growth plans," he said.

Caterpillar has three manufacturing in the country, including the Chennai truck plant, as well as a logistics services center and a R&D center.

Perkins Engines builds diesel engines for agricultural and construction equipment, material handling, power generation, and industrial processes. Caterpillar has owned the company as a subsidiary since 1998.