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September 18, 2007

Caterpillar eyes new engine plant in China

PEORIA, ILL.

Heavy equipment maker Caterpillar Inc. plans to build a diesel-engine manufacturing facility in China that will make more than 100,000 engines a year.

The Peoria-based company wants to build Perkins and Caterpillar brand diesel engines in Wuxi in China’s Jiangsu province to be primarily sold in Asian markets. Caterpillar officials said the development is still subject to final agreement with the government of Wuxi.

The company did not announce how much it will invest in the plant, but said it will be a significant multi-year investment. Caterpillar would build the plant through a joint venture with Japanese partner IHI Shibauru Machinery Corp.

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