Caterpillar to build plant in China

(Reuters) - Caterpillar Inc. said on Tuesday it will build a production plant in coastal China as part of a long-range plan to expand into that country's economy.

The company, the world's largest maker of earth-moving equipment, plans to use the facility to build mini hydraulic excavator models weighing less than 8 tons.

The plant is planned for Wujiang, a suburb of Shanghai. Construction will begin later this year and the first models are slated to roll off the production line by 2012.

"We want Caterpillar customers to be more successful working with us, than they can be working with anyone else, and this new operation in Wujiang is the latest step in our long term strategy for helping our customers win in China," said Jiming Zhu, a Caterpillar vice president overseeing the company's operations in China.

The Peoria, IL -based company did not disclose costs or revenue expectations for the plant. It has about 6,000 employees in China