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Caterpillar to build engine factory in China

Caterpillar announced that it will build a state-of-the-art $300 million manufacturing facility in Tianjin, China, to increase its worldwide capacity for large-engine production.

Once operational in 2013, the facility will be Caterpillar's third global source for its 3500 series engines. The facility in Tianjin will focus on producing engines for customers in China and the Asia-Pacific region.

"For years, Caterpillar customers across China have been using machinery and gensets powered by 3500 engines to help drive sustainable economic progress and development," said Jiming Zhu, Caterpillar vice president with responsibility for China, in a statement.

"With the opening of this new engine facility in Tianjin, Caterpillar will be better positioned to compete and support its growing base of customers in China and across Asia," he added.

Caterpillar's Large Engine Center in Lafayette, Ind., will continue to produce the 3500 series as well as other large engines. The Lafayette facility will focus on supporting 3500 series customers outside the Asia-Pacific region.

The company said it does not expect the Tianjin facility to have an impact on current employment in Lafayette.

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