Caterpillar to expand Indian operations investing $212 million

December 1st, 2011 - 1:14 am ICT by IANS  

Chennai, Nov 30 (IANS) As a part of its $3 billion expansion programme globally, mining, construction equipment and engines manufacturer Caterpillar Inc will be investing $212 million over the next two years in India in setting up a new engine plant and expanding its existing earthmoving equipment facility, said a senior official.

“Over the next five years the company will be investing around $2-$3 billion in expanding capacities in various markets. In India we will be setting up a new engine manufacturing facility to produce Perkins branded 4000 series engine at an outlay of $150 million,” Group President Richard P. Lavin told reporters here Wednesday.

The $42 billion revenue company will also invest $62 million in expanding its earthmoving equipment facility located near here.

“The proposed engine plant will be Perkins first plant outside of UK. The initial capacity will be 3,000 units per annum and would be ramped up to 5,000 units over 12 to 18 months period,” Kevin Thieneman, president of Caterpillar Asia said.

According to him, as per plans fifty percent of the genset engine production will be for Indian market and the balance will be shipped out to other markets.

Officials declined to indicate the locations that Caterpillar is planning to set up its engine plant.

According to Thieneman, the engine plant will start production with sizeable quantities of imported components and later the localisation levels will increase.

Rolling out dumpers, excavators, backhoe loaders and other earthmoving equipments out of its plant at Tiruvallur near here, Caterpillar will be expanding its truck/dumper manufacturing capacity at an outlay of $62 million.

This will be in addition to the $108 million expansion investment the company had announced in 2010.

Thieneman said the company’s dedicated backhoe loader plant will be commissioned next year.

In the dumper segment - huge trucks used to move earth in mines- Caterpillar rolls out range of vehiles in the capacity 40 - 100 ton.

According to Lavin, the company has an engineering design centre here employing around 800 persons.

The division provides engineering design services for Caterpillar globally.

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