News & Resources

Caterpillar announces £50m investment in UK assembly plant

13 Dec 2011

Caterpillar’s Building Construction Products Division has announced it is to invest £50m in its UK manufacturing facilities for new products and expanded production facilities in Leicestershire and Stoke-on-Tees.

The news follows Caterpillar’s recent announcement to create 300 new permanent jobs across the East Midlands and North East UK regions, generating new supply chain possibilities for local engineering and manufacturing companies that supply components to Caterpillar.

Commenting on the announcement Baljinder Sanghera, Managing Director of Leicester–based   firm Kaby Engineering, said, “Kaby has been a supplier to Caterpillar for 33 years and with this new growth the future looks very bright for everyone here in Leicester”. He added, “Kaby has been working very closely with Caterpillar in strengthening the supply chain right from initial design of the product to delivery at the assembly line and removing waste throughout the whole process.”

Business Minister, Mark Prisk MP said, “The news of the £50m investment, along with the recent creation of 300 permanent jobs is excellent for the East Midlands and the North East. This is a real vote of confidence in UK manufacturing and in our capabilities in construction equipment innovation and production. It’s manufacturers like Caterpillar and their UK supply chain that will help us rebalance the economy, create jobs and encourage sustainable economic growth that benefits the whole country.”

Robert Droogleever, General Manager of Caterpillar’s Global Backhoe Loader Business, said, “This investment is the most recent example of the Company’s on-going strategy to invest in its UK operations to support customer demand in the long-term,” said. “Our UK workforce has demonstrated that they have the capability to design and assemble world-class products in Desford and Stockton to the benefit of the regional economies in which we operate and, with more than 90% of our products being exported, to send a strong signal about the ability of UK-based manufacturers to be globally competitive.”

Caterpillar’s UK manufacturing facilities employ more than 2,000 people and since 2010 has increased its labour resource in the UK by more than 70%.

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