PEORIA, Ill. (AP) _ 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 said Tuesday it wants to build Perkins and Caterpillar brand diesel engines in Wuxi in China’s Jiangsu province. The engines will primarily be sold in Asian markets, it said.
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.”
“This is about increasing our global capacity to meet customer demand,” Caterpillar spokesman Rusty Dunn said Tuesday. “It’s a significant symbol of Caterpillar’s commitment to China and the region.”
Caterpillar would build the plant through a joint venture with Japanese partner IHI Shibauru Machinery Corp.
The plan is to first begin production on smaller diesel engines for construction and agricultural equipment. It is also considering a second phase under which it would make medium-sized diesel engines to be used for research and development.
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