BEIJING — Caterpillar Inc. (CAT) announced Tuesday it will build state-of-the-art small and medium diesel engines in Wuxi, Jiangsu province, China.

 

CAT signed a non-binding memorandum of understanding with the Wuxi National High-Tech Industrial Development Zone for a multi-year investment to develop and manufacture Perkins and Caterpillar engines in Wuxi.

 

“This new facility will make the 400 Series engines more readily available for original equipment manufacturers with operations in China and the Asia Pacific region,” said Hans Haefeli, Caterpillar vice president with responsibility for the Industrial Power Systems Division.

 

CAT will also manufacture medium size diesel engines in Wuxi and plans to focus engine research and development in Wuxi for engines that meet the emissions requirements for Chinese and other customers.

 

The medium size engines would be used in Caterpillar core construction equipment, for power generation, in commercial marine applications and would be sold to OEMs for agricultural and other industrial uses.

 

When fully operational, the engine facilities will have a combined capacity of over 100,000 diesel engines per year.