Caterpillar (NYSE:CAT) said it will spend close to $180 million in order to expand its Brazilian manufacturing capacity to meet the increasing demand in the largest South American market, as well as the rest of Latin America.
Spending will target its Piracicaba plant in Brazil - which is already operational - for expansion, while acquiring another plant in Campo Largo.
Campo Largo wil produce small-wheel loaders and backhoes used by construction companies. Production there will start in 2011.
The Piracicaba expenditure and expansion will proceed over a two year period.
Shares in Caterpillar soared today by over 5 percent, being pulled up with the broader market.