MercoPress. South Atlantic News Agency

Caterpillar expanding plant in Brazil to meet growing Latam demand

Luiz Carlos Calil, Caterpillar Brazil president

US corporation Caterpillar Inc. said Tuesday it will build a new manufacturing facility in Brazil to meet growing customer demand there and across Latin America.

Caterpillar said it will make backhoe loaders and small wheel loaders at the new factory, the site of which will be finalized and announced later this summer. The company said the expansion is part of its long-term global manufacturing strategy.

Caterpillar currently makes backhoe loaders and small wheel loaders at its plant in Piracicaba, Brazil. Once the new facility begins production, it will allow Caterpillar to increase capacity for the other machines produced in Piracicaba, the company said.

“The strategic decision to expand our operations in Brazil will position Caterpillar to meet customer demand, particularly considering the strong economic recovery that has taken place across the region in the last year,” said Luiz Carlos Calil, Caterpillar Brazil president, in a news release.

“In addition, our existing operations in Brazil have been a consistent leader in the development and implementation of the Caterpillar Production System, resulting in a reputation for quality and manufacturing excellence within the Caterpillar Organization,” he said.

Construction of the new plant will begin later this year or in early 2011, the company said.

“For Caterpillar to maintain its industry leadership, it is critical that we continue to invest in our operations in emerging markets to support our customers,” said Rich Lavin, Caterpillar group president responsible for emerging markets, in the release.

Caterpillar spokesman Jim Dugan said the machines that will be made at the new Brazil plant already are made in Brazil.

Once production of backhoe loaders and small wheel loaders is moved to the new plant, the company will be able to expand the capacity at the existing plant to for increased production of other machines, including motor graders, excavators, compactors and various components.