Summary
Caterpillar Inc. (CAT) announced significant expansion plans in its mining and heavy truck divisions through a press release filed on June 17, 2010. The company is investing approximately $700 million to bolster its mining shovel offerings and increase truck production capacity. This strategic move signals Caterpillar's commitment to capturing a larger share of the growing mining equipment market and responding to increased customer demand. Key initiatives include the introduction of a full range of mining shovels, from 125 to 800 tons, with initial production starting in Illinois and broader availability expected in the coming years. Furthermore, Caterpillar is expanding truck manufacturing capacity at its Decatur, Illinois facility by nearly 30% and significantly increasing production capabilities for 60-ton and 100-ton trucks in Chennai, India. The company is also accelerating the production of its electric-drive mining trucks, reflecting strong market interest and anticipated future demand.
Key Highlights
- 1Caterpillar is investing nearly $700 million in mining shovel and truck capacity expansions.
- 2The company will produce a full range of mining shovels (125-ton to 800-ton), with initial production in Aurora, Illinois.
- 3The first commercially available mining shovels are expected in late 2011, with larger models rolling out through 2014.
- 4Truck capacity at the Decatur, Illinois facility will increase by nearly 30%.
- 5Truck production capacity in Chennai, India, for 60-ton and 100-ton trucks is expected to more than double.
- 6Commercial production of the 345-ton 795F AC electric-drive mining truck is slated for late 2010.
- 7Planned build rate for the 795F AC truck is increased by over 40% for 2011 due to strong interest.