Bangalore: Caterpillar Inc said it will invest $210 million in India as the heavy machinery giant looks to capitalize on an expected spurt in road construction and infrastructure development activities in one of its important markets.
Caterpillar said it will invest $150 million to build a facility that will produce its Perkins branded 4000 Series engines, and an additional $62 million in its existing off-highway truck manufacturing facility in Chennai.
The Peoria, Illinois-based company said the location for the new Perkins engine facility has yet to be determined, although the site selection process is expected to be completed in the near future.
The new investment to expand truck capacity in Chennai is in addition to a $108 million investment for Chennai that Caterpillar announced in 2010, the company said.
Caterpillar currently has three manufacturing facilities, a logistics services base and a research and development center in India.
Caterpillar shares, which gained 7% of their value in the last three months, closed at $90.54 Tuesday on the New York Stock Exchange.