Caterpillar has signed an agreement with Xitong Technical Industrial Park Administrative Committee to build a proving ground and large wheel loader manufacturing facility in Jiangsu Province, China.
The Asia Pacific Proving Ground will provide validation and product development services for Caterpillar's machinery produced in the region.
The large wheel loader manufacturing facility will produce a new model of wheel loader, which is currently being developed at Caterpillar's Wuxi Research and Development Center.
Caterpillar vice-president for the mining products division Luis de Leon said, "The large wheel loaders we are going to make in Tongzhou will give customers a new option that has been designed to suit the needs of mining applications in China and growth markets."
The Asia Pacific Proving Ground will be operational next year and the wheel loader facility is expected to start production in the fourth quarter of 2012.