Caterpillar may build new excavator plant; impact on Aurora unknown

Caterpillar Inc., the world's largest maker of bulldozers, may create about 250 jobs in the U.S. by moving some hydraulic excavator production from Japan.

A study announced today may prompt construction of a new excavator plant in the U.S., Peoria-based Caterpillar said today in a statement. The study will be completed in about 60 days and the location of the new plant hasn't been determined, said Jim Dugan, a spokesman for Caterpillar.

Some excavator models now built in Japan are shipped to the U.S., Caterpillar said. The study will help the company decide whether to shift that production to the U.S. and use the Japanese plant to supply the growing Asian market, Dugan said.

The company produces two excavator models in Aurora, where it also makes wheel loaders, soil compactors, bulldozers and parts. The new U.S. plant would build the two models now made in Aurora and other versions built in Japan, tripling Caterpillar's U.S. hydraulic excavator production.

"The idea here is to have a single, dedicated U.S. facility for this product," Dugan said.

Caterpillar also makes excavators in Belgium, Brazil, China, France, Indonesia and Russia.

Caterpillar rose 12 cents to $58.90 at 4:01 p.m. in New York Stock Exchange composite trading. The shares have more than doubled in the past 12 months.