US-based heavy equipment manufacturer Caterpillar has revealed plans to build a US$150-million mining truck facility on the Indonesian island of Batam to improve support of Asia-Pacific customers. The company says it will produce a range of mining truck chassis and bodies at the new facility which will then be shipped to customers throughout the Asia-Pacific region.

The plant should be operational in 2012 for truck bodies and will produce its first trucks in the third quarter of 2013. It will be the company’s second manufacturing operation in Indonesia after the existing production facility in Cileungsi, West Java. This operation opened in 1982 and produces excavators and skidders, with the company planning to triple its excavator production there to meet growing demand in the mining, forestry, construction and agricultural markets in Indonesia.

“The mining industry is a critical part of Indonesia’s economy and plays an important role in many of the key growth markets in the Asia Pacific,” says Caterpillar group president Rich Lavin.

“We have a long and successful history operating in Indonesia, and with this announcement, we continue to build out our full business model across the Asia Pacific to better position Caterpillar to compete and succeed in this region, and to maintain our global leadership position,” he said.

The company has also announced plans to increase capacity at its large mining truck and track-type tractor facility at two of its manufacturing plants in the United States. A $300-million investment in the Decatur truck production facility and a $340-million expansion at East Peoria where Caterpillar track-type tractors are built will be completed by 2015.

Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

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