Caterpillar announced it had selected land near Athens, Georgia, as the location for a new $200 million facility to build small track-type tractors and mini hydraulic excavators. The facility is expected to offer 1,400 jobs.

The new facility is planned to break ground in the first quarter of 2012. Initial production at the facility is expected to start in late 2013, ramping up to full production over a period of five years.

The facility will become Caterpillar's global source for small track-type tractors. In terms of mini hydraulic excavators, the new facility will supply completed machines for customers in North and South America. Besides, the company plans to export partially assembled mini excavator base units to a facility in Europe, where final assembly will take place, improving delivery times for European customers.

Work at the new plant will include major fabrications, paint and final assembly for both product lines. The company also plans to have an on-site product distribution center for small track-type tractors and mini hydraulic excavators produced at the new facility. These machines are currently made at Caterpillar's Sagami, Japan, facility. Once the transition to the new facility in Athens is completed, the Sagami plant will continue to serve a key strategic role in Caterpillar's global growth strategy as a high-tech component facility.

The new facility will be part of Caterpillar's Building Construction Products (BCP) Division, which is based in Cary, NC. The 1.0 million sq. ft. facility is expected to directly employ 1400 people once it is fully operational.

"The decision to shift production from Japan to the United States is driven by the proximity to a large base of customers in North America and Europe. Our objective is to better serve those customers from this new factory," said BCP Vice President Mary Bell.

"The Athens site was selected from among dozens of locations considered due to its proximity to the major ports of Savannah and Charleston, a strong regional base of potential suppliers, a positive and pro-active business climate and a good pool of potential employees with manufacturing experience," Bell said.