Caterpillar Inc. last week announced plans to expand its manufacturing presence in Brazil to further position the company to meet growing customer demand across Latin America. Studies and site selection for the new facility are at advanced stages and are part of Caterpillar's long-term global manufacturing strategy, the company said. A final location is expected to be announced later this summer.

The new facility will produce backhoe loaders and small wheel loaders, which are among the products currently made at Caterpillar's Piracicaba, Brazil, operations. Once the manufacturing facility begins production, it will allow Caterpillar to increase capacity for the other machines produced in Piracicaba.

"The strategic decision to expand our operations in Brazil will position Caterpillar to meet customer demand, particularly considering the strong economic recovery that has taken place across the region in the last year," said Luiz Carlos Calil, Caterpillar Brazil president. "In addition, our existing operations in Brazil have been a consistent leader in the development and implementation of the Caterpillar Production System, resulting in a reputation for quality and manufacturing excellence within the Caterpillar organization."

Construction of the new facility is expected to begin in late 2010 or early 2011, pending final site approvals.

"For Caterpillar to maintain its industry leadership, it is critical that we continue to invest in our operations in emerging markets to support our customers," said Rich Lavin, Caterpillar group president with responsibility for emerging markets.

Caterpillar's existing manufacturing operation in Piracicaba produces wheel loaders, motor graders, backhoe loaders, track-type tractors, excavators, compactors, underground mining loaders, generator sets and a variety of components.

Caterpillar Inc. is headquartered in Peoria, Ill. It is a leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.