Caterpillar Inc. is set to invest tens of millions of dollars to upgrade its facilities in Schertz and Seguin, Texas, as part of production efforts for its new C13D engine.
The Irving-based construction equipment builder says the new C13D 12-liter diesel engine delivers a 20% increase in overall power with 10% less fluid consumption compared to the previous iteration of Caterpillar engines in this category. It is intended for construction, agriculture, and other industries that demand heavy equipment.
Mark Stratton, vice president and general manager of Caterpillar’s Industrial Power Systems—Large Engines, thanked the local community for its support.
“The Caterpillar team in Texas will produce the quality parts and engines we need for our customers as we help them build a better, more sustainable world,” said Stratton, per NEWS4SA.
In 2022, The Dallas Express reported that Caterpillar was planning to move its headquarters to North Texas, a move many other companies have since made. Now based in Irving, Caterpillar ranks as the largest publicly traded company in North Texas, as measured by market cap.
As part of the company’s latest regional expansion, $70 million will be invested in the Schertz facility for new equipment installs. The remaining $20 million will go toward engine assembly in Seguin. The Schertz investment is expected to net 25 new jobs.
Seguin City Manager Steve Parker said the investment will also bring other benefits.
“Something like that will generate another $100,000 a year in property taxes,” said Parker, per the Seguin Gazette. “For employees, if they hire employees, those people will be spending money in Seguin. Every dollar turns over four or five times in a community. It’s always a positive thing.”
As of Friday mid-day, Caterpillar Inc. was up over 19% year to date, compared to just under 12% for the S&P 500.