Caterpillar to Invest $210M in India
Caterpillar (NYSE:CAT) will invest an additional $210 million in India as part of an ongoing effort to expand its presence overseas.
The move adds to a growing list of investments, including several in China and Japan, that Caterpillar has made globally as part of its 2015 corporate strategy of growing closer to customers in international markets.
The manufacturer noted its Indian investment will not only help customers in that country but in two other emerging markets as well. Growing these markets will help support customers in developed economies, including the U.S., Caterpillar said.
About $150 million of that investment will go toward building a new, state-of-the-art engine manufacturing facility in India that will produce Perkins-branded 4000 series engines, the U.S.-based tractor maker said on Wednesday.
Perkins is a whole-owned subsidiary of Caterpillar.
The company is also investing $62 million in its existing off-highway truck manufacturing facility in Chennai, which adds to an earlier investment of $108 million from 2010.
Caterpillar said the plan will help the Indian government follow through with an “aggressive plan to accelerate road construction and overall infrastructure development.”
The company already has three manufacturing facilities in India, as well as a logistics services base and a research and development center.