Caterpillar Inc. last week announced it will build a $300 million state-of-the-art manufacturing facility in Tianjin, China, to increase its worldwide capacity for large-engine production. Once operational in 2013, the engine facility will become Caterpillar's third global source for the company's 3500 series engines. The facility in Tianjin will focus on producing engines for customers in China and the Asia-Pacific region.

Caterpillar 3500 series engines satisfy difficult requirements for global customers in a wide range of industrial applications, including the oil and gas, marine and electric power industries.

"For years, Caterpillar customers across China have been using machinery and gen-sets powered by 3500 engines to help drive sustainable economic progress and development," said Jiming Zhu, Caterpillar vice president with responsibility for China. "With the opening of this new engine facility in Tianjin, Caterpillar will be better positioned to compete and support its growing base of customers in China and across Asia."

Caterpillar's Large Engine Center in Lafayette, Ind., will continue to produce the 3500 series engines as well as other large engines now made at Lafayette. The Lafayette facility will focus on supporting 3500 series customers outside of the Asia-Pacific region. As such, the company does not expect the opening of the new facility in Tianjin to have an impact on current employment in Lafayette.

In recent years, Caterpillar and its independent dealers have made significant investments to expand the range of products and components produced in China, increase and improve customer support services, and expand and enhance dealer coverage in every province. Today, Caterpillar has more than 7,400 employees across China.

Caterpillar Inc. is headquartered in Peoria, Ill.