Caterpillar has announced it will build a new 600000 ft2 (55750 m2) excavator factory in the city of Victoria, Texas, US. Ground breaking is scheduled for September, with production due to start in mid-2012.

The new factory is set to triple the company's US capacity to manufacture excavators. The company said it chose Victoria because of its proximity to suppliers, ports and transportation, as well as "The positive business climate in Texas."

Caterpillar currently produces just two excavator models in the US. These are made at its plant in Aurora, Illinois, which also makes wheeled loaders, landfill compactors, wheeled dozers and components. The new factory in Victoria will take over production of these two models as well as several others that are made at the company's plant in Akashi, Japan and exported to the US.

"The expansion of excavator production in the US will allow the Caterpillar facility in Japan to better serve the growing demand for excavators in Asia, " said a company statement.

Caterpillar also builds excavators in Belgium, Brazil, China, France, Indonesia and Russia. Earlier this year it announced plans to quadruple capacity at its excavator plant in Xuzhou, China.

"We are making a number of these long-term investments in our global excavator business so that we are appropriately positioned to support Caterpillar's corporate strategy. This will enable us to maintain our global leadership position while delivering superior products to our customers and results for stockholders, said Rich Lavin, Caterpillar group president with responsibility for construction industries.