Caterpillar Announces its Expansion Plan for New Manufacturing Facility in Brazil
Online, July 5, 2010 (Newswire.com) - [Brazil July-5-2010] Caterpillar Inc. Tuesday announced its plans for expansion in Brazil to meet the growing Latin America market. In this regard, the company will increase its Brazilian manufacturing operations presence to enhance its position and enable it meet the burgeoning customer demand in Latin America.
According to the company, a studies and site selection for the new plant are in advanced stages and the investment comes as part of the company's long term global manufacturing strategy. The company said it will be announcing its final location for the new facility later this summer. As per its plans, the new plant will manufacture backhoe loaders and small wheel loaders; currently being produced at Caterpillar's plant in Piracicaba.
With the commencement of production, the new plant will enable Caterpillar increase its capacity for other machines in Piracicaba. According to Caterpillar Brazil President, Luiz Carlos Calil, the company's strategic decision to expand its Brazilian operations will position it to cater for the customer demand of the region given the fact that the region witnessed impressive economic recovery in 2009 after the global financial meltdown.
Additionally, Calil noted that once Caterpillar's new plant begins operations, the company will be better placed to increase its capacity for additional machines at its Piracicaba plant, adding that its Brazilian operations have been at the core of development and implementation of the company's Caterpillar Production System (CPS).
Subsequently, Caterpillar has gained a lot of reputation for quality and manufacturing excellence across the region. The construction of the company's new plant will commence in late 2010 or early 2011, awaiting the final site approvals. Caterpillar Group President, Rich Lavin, also responsible for emerging markets, said; for the company to maintain its industry leadership, it is vital that there is a continued investment in its operations in emerging markets.
The company's current manufacturing operations at Piracicaba produce motor graders, backhoe loaders, track-type tractors, excavators, compactors, underground mining loaders, generator sets and a variety of components. Caterpillar Inc has increased its Global operations considerably making progress and driving positive sustainable growth in its businesses.
The 85 year old company had, in 2009 sales and revenues of $32.396 billion and is as well the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.
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