Caterpillar Outlines New Plant, Expansion Project in Brazil

New Latin American capacity for backhoes and wheel loaders

Caterpillar Inc. is expanding its manufacturing operations in Brazil with two projects carrying a total investment of about $180 million over two years. The equipment builder explained it acquired an existing industrial plant in Campo Largo, Parana State, which will be updated and expanded to manufacture backhoe loaders and small wheel loaders. Both product lines are part of Caterpillar’s Building Construction Products Division.

In Brazil, Caterpillar produces wheel loaders, motor graders, backhoe loaders, track-type tractors, hydraulic excavators, compactors, underground mining loaders, generator sets, and a number of components.

The new plant will begin production in 2011. Caterpillar estimates it will create up to 1,000 new jobs when it is fully established.

"This new facility is an important investment for the long-term growth and success of BCP, particularly as we meet the growing demand for Caterpillar's smaller, versatile machines that help our customers accomplish their work more productively and profitably," stated Mary Bell, Caterpillar vice president - Building Construction Products Division.

In a separate project, Caterpillar plans to increase the capacity of its flagship plant in Piracicaba, Brazil, where it will manufacture its core products — construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

"The strategic decision to expand the operations in Brazil is part of Caterpillar's long-term global strategy for growing our business in key growth markets and this move will enable Caterpillar to meet demand from its growing base of customers in Latin America," said Rich Lavin, Caterpillar group president with responsibility for growth markets and core products.

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