PEORIA, Ill. - Caterpillar Inc. will build a new small engine plant in Seguin, Texas, and move jobs there that are now at the company’s engine plant in Mossville.
News about the plant in Seguin, a town of about 25,000 people located less than 30 miles east of San Antonio, came Thursday from the office of Texas Gov. Rick Perry.
The plant, said a news release, will create more than 1,400 jobs and generate $169.7 million in capital investment by the time it’s completed, likely in 2011. The state of Texas will invest $10 million through the Texas Enterprise Fund.
The news release said Caterpillar will relocate jobs from other facilities and consolidate them. Reportedly, those include assembly jobs from Mossville and operations from South Carolina as well as machining work now done in San Antonio on engine castings made in Mexico. Those castings had previously been made at Caterpillar’s plant in Mapleton.
The engines made at Seguin, the release said, will be for Caterpillar machines and in applications in power generation equipment and the petroleum and marine industries.
Caterpillar announced Thursday it will indefinitely lay off 814 employees of its Mossville engine plant because demand for the product has fallen dramatically in recent months.