In 2002, in partnership with Royal Oak Industries d.b.a. Texas Machining Enterprises, Caterpillar broke ground on a San Antonio manufacturing plant to produce C7 and C9 Series cylinder blocks. In 2004 and in 2008, the plant expanded for additional capacity. Since these first steps taken in San Antonio, Caterpillar has subsequently made a series of investments in manufacturing and logistics operations both in and around Bexar County and throughout the TMASC region, in order to competitively and efficiently serve North- and Latin American markets.
- Seguin plant – In June 2010, Caterpillar opened a new heavy duty diesel engine manufacturing and testing plant in Seguin, Texas. The plant’s engines are used in Caterpillar products serving the truck, marine and electric power industries.
- $169.7 million in new capital investment
- 1,500 new jobs at full capacity by early 2013
- Schertz plant – In 2010, Caterpillar began construction of a new engine blocks and components manufacturing plant in Schertz, Texas. The plant will supply the Caterpillar engine plant in Seguin.
- $35 million in new capital investment (for 1st phase of facility, with room to expand)
- 60 new jobs
These plants in the San Antonio MSA are part of a larger Caterpillar commitment to the region including a new hydraulic excavator manufacturing facility in Victoria, Texas; distribution centers and a precision work-tools manufacturing plant in Waco, Texas; and a large mining truck manufacturing plant in Acuña, Mexico.
Caterpillar’s growing presence has created a critical mass of industry and opportunity in our region. Caterpillar’s pattern of investments in manufacturing and logistics operations generate not only additional regional employment, but potential new supply chain opportunities as well. In Seguin, for example, local supplier Continental Automotive Systems has become a supplier of components to the Caterpillar engine plant.
Caterpillar’s corporate strength and future growth prospects will support manufacturing and trade activity in Bexar County and the TMASC region. Caterpillar’s 3Q 2011 sales and revenues were a record $15.7 billion, up 41% from 3Q 2010. Meanwhile, Caterpillar’s 2010 product exports from the US were nearly $13.5 billion. The recent passage of US free trade agreements with Panama and Columbia may also support Caterpillar’s operations in the region as the elimination of tariffs on exports to these countries promote the sale of Caterpillar products related to mining activity in Columbia and to the expansion of the canal in Panama.