Dubai (PlantAndEquipment.com) - Caterpillar aims to spend up to $1 billion in North Carolina to bolster its compact equipment manufacturing capability, which encompasses the development of a new production site in Sanford.

The new factory will enhance manufacturing of Cat compact track loaders and telehandlers, two types of equipment that Caterpillar claims are in high demand among customers. The investment is part of Cat Compact's overall strategy, which targets small contractors and developing firms.

The Sanford plant will be built on sophisticated manufacturing technologies such as automation, robotics, digital production systems, and integrated logistics. Caterpillar anticipates that the technology-enabled facility will improve production efficiency while allowing for increased output from smaller machinery.

Compact track loaders are often used for earthmoving, loading, landscaping, and site preparation, while telehandlers combine lifting height and reach to transport items on construction, industrial, and agricultural projects. Beyond Caterpillar's core heavy construction and mining equipment offerings, both sectors have grown in importance.

Caterpillar already has manufacturing operations in Sanford, and the business said that North Carolina was chosen in part due to its existing workforce and manufacturing capabilities in the region. The most recent investment will expand on that proven production base while generating new sophisticated manufacturing employment.

The initiative marks yet another significant expansion of Caterpillar's US manufacturing presence, as the company boosts capacity in equipment categories where demand is increasing. The business did not define the new Sanford facility's intended production capacity or a schedule for when manufacturing will begin.