Caterpillar to invest £50 million in UK plants
15 December 2011 - 17:18
Investment to be shared between assembly plant at Desford and fabrication facility in Stockton-on-Tees
CATERPILLAR’s Building Construction Products Division is to invest £50 million in its backhoe loader assembly plant at Desford, in Leicestershire, and its steel fabrications facility in Stockton-on-Tees.
The investment will be shared between the two factories and used to fund manufacturing capacity increases to meet growing customer demand, as well as further investment in new products and R&D programmes.
As a result, annual production of backhoe loaders at Desford is expected to increase from around 11,000 to 20,000 over the next four years.
News of the investment follows Caterpillar’s recent announcement of the creation of 300 permanent jobs at Desford.
Robert Droogleever, general manager of Caterpillar’s global backhoe loader business, said the investment was the most recent example of the company’s ongoing strategy to invest in its UK operations to support customer demand in the long-term.
‘Our UK workforce have demonstrated that they have the capability to design and assemble world-class products in Desford and Stockton to the benefit of the regional economies in which we operate,’ he commented.
‘With more than 90% of our products being exported, it sends a strong signal about the ability of UK-based manufacturers to be globally competitive.’
Government’s Business Minister Mark Prisk described the £50 million investment and the recent creation of 300 permanent jobs, as excellent news for the East Midlands and the North East.
‘This is a real vote of confidence in UK manufacturing and in our capabilities in construction equipment innovation and production,’ he said.
‘It’s manufacturers like Caterpillar and their UK supply chain that will help us rebalance the economy, create jobs and encourage sustainable economic growth that benefits the whole country.’
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