Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Caterpillar Inc. (NYSE:CAT) plans to relocate one of its major production factories from Japan to the U.S. and employ an estimated 1,400 workers, announced the company.
The new facility, which will build small track- type tractors and mini hydraulic excavators, will be located near Athens, in the State of Georgia.
The proposed $200 million, state-of-the-art, one-million-square-foot-factory will build small track-type tractors and mini hydraulic excavators. The new plant will include major fabrications, paint and final assembly for both product lines. Production is expected to begin in late 2013, ramping up to full speed over a five-year period. Caterpillar officials estimate another 2,800 full-time jobs will be created among suppliers and companies that will support the new facility.
“We are making a series of significant investments around the world to position Caterpillar to maintain its leadership position. We are even more excited that this project will create more than 4,200 jobs in the United States,” said Caterpillar Chairman and Chief Executive Officer.
The company had announced plans to open a new manufacturing facility in North America in late 2011. The decision is part of a strategy to move production closer to the majority of customers who use small track-type tractors and mini hydraulic excavators, Caterpillar announced. The new facility will be part of Caterpillar’s Building Construction Products (BCP) Division, which is based in Cary, North Carolina.
