In a positive sign for the giant OTR tire market, Caterpillar Inc. announced a $700 million multi-year investment to boost production of its key mining equipment.
The Peoria, Ill.-based heavy equipment maker said the four-year program would see the addition of new mining shovels and increased haul truck capacity.
The company’s Aurora, Ill., plant will be enhanced to build a series of 125- to 800-ton mining shovels, Caterpillar said, with the first product due off the line in 2011. Larger shovels will hit the market in 2013-14. Caterpillar said it is considering other global locations for additional mining shovel capacity.
The company is also accelerating previously announced 30% capacity expansion plans for trucks in Decatur, Ill., with additional capacity expected to come on line beginning in 2011. Decatur produces Caterpillar’s largest mining trucks, including the flagship 797F series truck, which has a maximum capacity of 400 tons.
In addition, Caterpillar plans to increase capacity for 60- and 100-ton trucks at its existing manufacturing facility near Chennai, India. The capacity expansion would more than double truck production capabilities in India.
"The increased production in India and Decatur will better position the company to serve our mining customers in every region of the world, with a particular focus on the growing demand and customer base in the emerging markets of Asia and in Russia," the company said.
