Caterpillar planning expansion in North Carolina

Gov. Bev Perdue will announce today an economic development project that will create 392 new jobs in Forsyth County.

The project is likely to be a new Caterpillar factory in Winston-Salem.

Caterpillar said earlier this month that it was considering establishing a major component manufacturing facility in the Southeast. The company had narrowed its list of possible locations to Montgomery, Ala., Spartanburg, S.C. and  Winston-Salem. 

A final decision was expected by August.

Caterpillar, the world's largest maker of earth-moving equipment, is also considering expanding its plant in Sanford.

Last month, Lee County Commissioners approved a $900,000 grant for the proposed project, said Bob Heuts, the county's director of economic development.

"That's just to let them know that we're very interested in anything they would do out there," Heuts said of the grant. "We wanted to make sure they knew and understood that we'd be ready to step up."

The company is also considering a site in South Carolina for the project, Heuts said.

The majority of Caterpillar's 1,800 workers in North Carolina are at operations in Clayton, Cary and Sanford.

The Peoria, Ill.-based company has cut hundreds of workers in the state as the recession hurt demand for its products.

But sales have been improving of late. Caterpillar raised its earnings forecast last week because of increased demand for its equipment.

And the company has added about 3,650 employees this year. About 1,250 of those were in the United States.