US-based construction and mining equipment giant Caterpillar Inc. announced on November 18, that it will build a state-of-the-art manufacturing facility in Tianjin, China, to increase its worldwide capacity for large-engine production. Once operational in 2013, the engine facility will become Caterpillar's third global source for the company's 3500 series engines. The facility in Tianjin will focus on producing engines for customers in China and the Asia-Pacific region.
Caterpillar China executives and leaders joined officials from Tianjin at a signing ceremony on November 18 to announce the $300 million project, which represents Caterpillar's largest new engine facility investment to date in China.
Caterpillar's Large Engine Center in Lafayette, Indiana, will continue to produce the 3500 series engines as well as other large engines now made at Lafayette. The Lafayette facility will focus on supporting 3500 series customers outside of the Asia-Pacific region. As such, the company does not expect the opening of the new facility in Tianjin to have an impact on current employment in Lafayette.