As part of a strategic investment in the mining business, Caterpillar (CAT) will open a new manufacturing facility in Thailand. The company expects to start production from late 2012.
To set up its first manufacturing facility in Thailand, an Australian subsidiary of Caterpillar inked a deal with Hemaraj Land & Development Pcl to buy land at an industrial estate in Thailand for the purpose. The facility, which is expected to engage 800 employees, will be built on an area of 71,759 square yards.
During the third quarter conference call, Caterpillar announced its plans of expanding mining products with shovels and electric-drive trucks. This new facility will complement the company’s plans, as a full range of underground mining articulated trucks and loaders will be manufactured at this facility. Underground mining articulated trucks and loaders are used in hard-rock underground mining applications.
The production from the new facility will add to underground mining products produced by Caterpillar in Australia and Brazil, thereby increasing total capacity. The Machinery and Engines Sales, which increased a whopping 59% in the third quarter of 2010, will be further augmented by increased production from the new facility.
Source: http://www.zacks.com/stock/news/46084/Caterpillar+to+Open+in+Thailand
