Cat to open new mining truck facility in Indonesia, expand U.S. capacity

  • 16-Nov-2011 08:11 EST
Cat 789D mining truck.jpg

Cat plans to build a mining truck facility in Batam, Indonesia, to produce a range of chassis and bodies to be shipped throughout Asia-Pacific. The company also plans to increase capacity for large mining trucks produced in Decatur, IL, of which more than 90% are exported. Shown is the 789D mining truck.

Caterpillar Inc. plans to build a mining truck facility in Batam, Indonesia, to produce a range of chassis and bodies that will be shipped to customers throughout Asia-Pacific. Chairman and CEO Doug Oberhelman announced the growth plans for mining at the 2011 Asia-Pacific Economic Cooperation (APEC) Summit “because much of the global demand for commodities today is being driven by the positive economic growth and development that is taking place in the growth markets of the Asia-Pacific region.” The company plans to invest about $150 million in the facility, which is expected to be operational in 2012 for truck bodies, with the first trucks produced in the third quarter of 2013. The company has also approved plans to triple excavator production at its existing Cileungsi, West Java, facility that opened in 1982 and is focused on producing excavators and skidders. Since the beginning of 2010, Cat has announced a series of investments and capacity expansion plans for its operations across Asia, including a quadrupling of excavator production in Xuzhou, China, and a total of nine new facilities, which are now under construction in China. The company also previously announced the construction of two new manufacturing operations for Thailand.

At the APEC Summit, Cat also announced plans for new investments at its existing manufacturing facilities in Decatur, IL, and East Peoria, IL. It plans to invest nearly $300 million to further increase capacity for large mining trucks produced in Decatur. An additional capital investment of about $340 million is planned for production of large track-type tractors in East Peoria, which are used in mining applications around the world. The company expects the additional truck capacity in Decatur to be installed by 2016; work to expand tractor production in East Peoria is expected to be completed by 2015.

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