Caterpillar Inc said that it would invest USD 210 million in India as the heavy machinery giant looks to capitalize on an expected spurt in road construction and infrastructure development activities in one of its important markets.

Caterpillar said it would invest USD 150 million to build a facility that would produce its Perkins branded 4,000 Series engines, and an additional USD 62 million in its existing off-highway truck manufacturing facility in Chennai.

The Peoria, Illinois-based company said the location for the new Perkins engine facility has yet to be determined, although the site selection process is expected to be completed in the near future.

The new investment to expand truck capacity in Chennai is in addition to a USD 108 million investment for Chennai that Caterpillar announced in 2010.

Caterpillar currently has three manufacturing facilities, a logistics services base and a research and development center in India.

(Sourced from Reuters)