Caterpillar has chosen Schertz, Texas, as the site for a new 260,000-square-foot manufacturing plant and plans to break ground on the facility before the end of the year. The plant will house Caterpillar’s engine head machining operations, which will make engine blocks and components for the company’s plant in Seguin, Texas, that opened earlier this year.

The Seguin plant assembles engines for the truck, marine and electric power industries.

Caterpillar expects to complete the Schertz plant by late 2011, employing about 60 workers.