VICTORIA, TX-Caterpillar Inc. will build its new hydraulicexcavator manufacturing facility in this South Texas town of 90,000residents. The Peoria, IL-based company, which manufacturesconstruction and mining equipment, as well as diesel and naturalgas engines and industrial gas turbines, will break ground on the600,000-square-foot facility next month.

Caterpillar received $1.18 million from the Texas EnterpriseFund (TEF) for the expansion. The Fortune 100 company is committedto creating 238 jobs through the TEF investment, and expects togenerate more than 500 jobs total. The company will also generatemore than $100 million in capital investment with thisexpansion.

"Based on our comprehensive review of possible locations,Victoria's proximity to our supply base, access to ports and othertransportation, as well as the positive business climate in Texasmade this the ideal site for this project," according to astatement from Gary Stampanato, Caterpillar vice president withresponsibility for excavators.