Caterpillar to invest USD 200 million, make India sourcing hub

New Delhi, June 26 (PTI) Leading construction machinery
and equipment manufacturer Caterpillar today announced a USD
200 million investment for increasing its manufacturing
capacity in India in order to make the country its regional
global sourcing hub.

The company said it is investing USD 200 in the next four
years for increasing production of the off-highway trucks, the
'Caterpillar 3508' model engines and backhoe loaders and make
the Tamil Nadu facilities a sourcing hub.

"Currently the 60 ton '773' and the 100 ton '777' models
of the off-highway truck are manufactured at the Chennai
plant. After the expansion, the Chennai facility will become
the main sourcing hub for our products which are to be sold in
South-East Asia and Russia," a company official told P.T.I.

The Hosur facility in the state would be brought up as
the global sourcing hub for the '3508 model' engine and most
overseas consignments will be shipped from there, the official
added.

"The new investment demonstrates company's commitment to
Indian customers and the importance of such an emerging market
as India," Caterpillar Chairman and C.E.O. Jim Owens said.

Caterpillar will also start production of 200 ton plus
models including the '785' and '795' at the facility once the
investment is made.

The company also plans to expand its engine production at
the plant and will start production of the '3508' engine model
there, which is used in the off-highway trucks.

The firm currently manufactures off-highway trucks,
backhoe loaders, engines, engine components and generator sets
in India.