Caterpillar Inc. last week said it plans to open a new manufacturing facility in Thailand to produce medium track-type tractors, which are used worldwide for various construction applications. Construction will begin on the new factory in 2011, with production scheduled to begin in late 2013.

“We continue to make strategic investments in our construction business to support our customers,” said Tom Bluth, Caterpillar vice president with responsibility for the company’s Earthmoving Division. “We are pleased to announce the expansion of Caterpillar’s manufacturing operations in Thailand, which will increase our capacity for our existing range of medium track-type tractors, particularly as we sharpen our focus on meeting long-term customer demand in growth markets.”

The new, 430,000-square-foot factory will be built on the Hemaraj Rayong Industrial Land in Rayong Province. The facility will increase the global production of medium track-type tractors to respond to the growth in demand. Once the facility in Thailand is fully operational and at full capacity, it is expected to employ about 900 people.

“The ongoing infrastructure development plans for the world’s growth markets combined with a long-term trend toward urbanization and growing wealth in emerging economies should continue to help drive long-term demand for construction equipment,” said Rich Lavin, Caterpillar group president with responsibility for construction industries and growth markets.

This new facility adds to Caterpillar's investment in Thailand. Construction on the company’s Underground Mining facility at Hemaraj Rayong Industrial Land is currently underway.

Headquartered in Peoria, Ill., Caterpillar Inc. is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.