Caterpillar Inc. this week announced plans to open a new manufacturing facility in Xuzhou, Jiangsu Province, China. Construction and modifications to pre-existing buildings will begin in 2011, with production scheduled for mid-2012. The facility will produce undercarriage components and track assemblies, which are utilized on Cat hydraulic excavators.

“This new facility is our latest strategic investment to continue expanding our presence and capacity in the Asia/Pacific region,” said Stu Levenick, Caterpillar group president with responsibility for customer and dealer support. “Together with our joint venture, AsiaTrak Ltd., in Tianjin, China, which also manufactures undercarriage components and track, Caterpillar is well positioned to meet the long-term demands of customers in China and Asia/Pacific.”

The 193,750-square-foot facility will be located in the Xuzhou Economic Development Zone. When fully operational and at full capacity, it is expected to employ about 400 people.

“This is an exciting opportunity for us to better serve our customers and provide support in China and throughout Asia/Pacific,” said Greg Folley, Caterpillar vice president with responsibility for the Remanufacturing & Components Division. “We are committed to meeting the needs of customers around the world, and believe the new facility will enable us to gain a leadership position in the undercarriage business in China.”

Caterpillar officials expect to realize a number of cost-saving benefits from the new facility. It will be located adjacent to the Caterpillar Xuzhou Ltd. hydraulic excavator facility, allowing shipment of finished undercarriage components to the Caterpillar machine facility for final assembly.

Caterpillar Inc., Peoria, Ill., manufactures construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.