With one of the largest economic packages ever offered, Texas has won a Caterpillar Inc. engine assembly plant that will be built in Seguin, near Austin and San Antonio.
The state will invest $10 million through the Texas Enterprise Fund in the company for the consolidation and movement of its manufacturing and testing facilities to Seguin, which is expected to generate $169.7 million in capital investment and 1,400 jobs. Texas was in competition with South Carolina and Mexico for the plant, which will combine assembly, paint, and testing facilities now located in Illinois and South Carolina.
Caterpillar, a manufacturer of heavy equipment, has operating locations across Texas. As a vehicle manufacturer in Texas, Caterpillar joins the new Toyota truck assembly plant in San Antonio and the General Motors assembly plant in Arlington.
The Legislature created the TEF in 2003 and re-appropriated funding in 2005 and 2007 to create more jobs. The fund has invested more than $365 million and closed the deal on projects generating over 52,000 new jobs and $13.7 billion in capital investment in the state, according to Gov. Rick Perry.