Caterpillar Inc. announced Tuesday plans to open a new manufacturing plant in Brazil to meet growing customer demand in Latin America.
The Peoria-based company said the new facility will produce backhoe loaders and small wheel loaders, which are now made in Piracicaba, in the southeast part of the country.
Once production starts at the new location, expected to be announced later in the summer, Caterpillar plans to increase capacity for other machines at the Piracicaba plant, which builds wheel loaders, motor graders, backhoe loaders, track-type tractors, excavators, compactors, underground mining loaders, generator sets and a variety of components.
Construction is expected to begin at the end of the year or early 2011.
Shares of Caterpillar were down $2.97, to $61.43, in late morning trading.
