Caterpillar Constructs Manufacturing Foothold in Brazil

by Joseph O'Reilly

Construction and mining equipment manufacturer Caterpillar is looking to expand its production footprint in Brazil and meet growing customer demand across Latin America by siting a new facility there. The location of the new plant will be announced later in summer 2010.

The new plant will produce backhoe and small wheel loaders, which are among the products currently made at Caterpillar¹s Piracicaba, Brazil, facility. Once the new plant begins production, it will allow the manufacturer to increase capacity for other machinery.

Caterpillar is capitalizing on the region¹s relatively strong economic recovery during the past year. A rise in available credit has helped drive Brazil¹s domestic prospects with demand for automobiles and housing, enabling the economy to grow nine percent year-on-year in the first quarter of 2010.

The manufacturer also has incentive to replicate what it has already created in Piracicaba. The current operation has been instrumental in developing the Caterpillar Production System, a business process strategy that stresses quality and manufacturing excellence within the organization.