Plans for Caterpillar’s new hydraulic excavator factory, now under construction in Victoria, Texas, have been changed to provide an extra 25% space.
In August of 2010, Caterpillar announced that it would build an 850,000 square foot excavator plant in Victoria, at a cost of $130m.
On the back of rising global demand for equipment, it is injecting another $70m into the project to add a further 200,000 square feet under roof.
The added investment increase production capacity beyond the original plans and will include the addition of selected in-house fabrication capacity for excavator production.
“Based on our analysis of where customer demand is moving for excavators in the years ahead, it makes sense to increase capacity in Victoria now, so that we can better serve our customers,” said Gary Stampanato, Caterpillar vice president with responsibility for hydraulic excavators. “In addition, we have also determined Victoria is the right location to produce selected fabrications for the excavators that will be assembled in this new facility.”
Excavator production in Victoria is expected to begin in mid-2012. Once fully operational, the new facility will more than triple the current capacity of hydraulic excavators produced by the company in the USA.
Currently, Caterpillar produces two excavator models at a facility in Aurora, Illinois, where it also produces wheel loaders, soil and landfill compactors, wheel dozers and components. Once fully operational, the Victoria facility would produce seven excavator models.
Caterpillar has also announced plans for a new 40,000-square-meter (430,000-square-foot) factory in Thailand. Construction begins this year, with production scheduled to begin in late-2013. The facility will produce medium track-type tractors.
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