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S.R. Raghunathan

MoU exchange: Mr Kevin R. Deenaman (left), Director, Caterpillar India, and M.F. Farooqui, Industries Secretary, Tamil Nadu, in the presence of the Tamil Nadu Chief Minister, Mr M. Karunanidhi, in Chennai on Thursday exchanging a memorandum of understanding. The company plans to start a heavy engineering equipment manufacturing plant near Chennai with an investment of Rs 800 crore.

Our Bureau

Chennai, Dec. 18

Caterpillar India plans to set up a third manufacturing facility in Tamil Nadu and expand its existing production facilities.

The company, the world’s largest manufacturer of construction and mining equipment and off-road vehicles, plans to invest Rs 800 crore to set up a new facility near Chennai and expand production at its existing facilities in Thiruvallur, an industrial suburb of Chennai, and at Hosur, according to officials.

A Government press release said that the company has committed to this investment through an agreement with the Tamil Nadu Government.

The agreement was signed in the presence of the Chief Minister, Mr M. Karunanidhi.

Officials said the company is in the process of identifying the specific site for the new production facility which is likely to come up close to its plant in Thiruvallur.

Apart from the domestic market the production from here is likely to be exported to over 45 locations, they said.

The US-company is a world leader with a business of $50 billion worldwide, and an investment in Tamil Nadu coming at a time when investments have generally slowed is an indication of the potential in the State, officials said.

The expansion will generate over 600 jobs directly and 1,900 indirect jobs. It now employs over 2,500 workers at both its facilities.

Caterpillar India makes a wide range of equipment including excavators, backhoe loaders and construction and mining equipment and engines.

More Stories on : Engineering | New Projects | Tamil Nadu

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