AUSTIN - Gov. Rick Perry, Lt. Gov. David Dewhurst and Speaker Tom Craddick today announced that Caterpillar Inc., a Fortune 50 company, will move one of its primary global assembly, test & paint facilities to Texas, creating more than 1,400 jobs. The state will invest $10 million through the Texas Enterprise Fund (TEF) in the company as a deal-closing incentive for the consolidation and movement of its manufacturing and testing facilities to Seguin, which will generate $169.7 million in capital investment. The project is the second largest in terms of job creation and investment this biennium. Texas was in competition with South Carolina and Mexico for this facility.
"In these uncertain economic times, companies across the country are looking to Texas as the place to grow their business thanks to a reasonable regulatory environment, educated workforce, and economic incentives that bolster Texas' capital and competition in a global marketplace," Gov. Perry said. "This investment in Caterpillar will not only create high paying jobs for Texans, but will strengthen our state's overall economic situation and further diversify our state's economic makeup."
Caterpillar is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and medium and high speed diesel engines. The company has several operating locations across the state, including Amarillo, Channelview, Coppell, Dallas, De Soto, El Paso, Fort Worth, Garland, Houston, Laredo, Mabank, McAllen, McKinney, Midland, Sherman, Waco, and Waskom.
"Caterpillar's decision to invest and create jobs in Texas is proof that our efforts to attract businesses and grow our economy are working, even in the face of a troubled U.S. economy," Lt. Governor Dewhurst said. "By keeping taxes low, removing roadblocks to growth and business, and maintaining a skilled workforce through our commitment to education, we will keep Texas moving forward as a national and global economic leader."
"Companies around the nation are taking notice of the great climate for business we have in Texas," Speaker Tom Craddick said. "By holding the line on taxes and promoting growth, we've created an economic climate that is the envy of America. Because of our strong economy, state government has a budget surplus at a time when most other states have a shortfall. This did not happen overnight, and it did not happen by chance. I congratulate the people of Seguin and South Central Texas on this great news."
With this investment, Caterpillar will consolidate and relocate its assembly, paint and testing operations from Illinois and South Carolina to Seguin. The facility will provide engines for Caterpillar machines and electric power generation, as well as petroleum, marine, and industrial customers.
"The incentive package assembled to recruit Caterpillar Inc. was by far the largest and most aggressive the community has ever developed," said Seguin Mayor Betty Ann Matthies. "Given the capital investment and the number of jobs committed, Seguin, in coordination with the state, delivered the most attractive incentive package to complement the area's strategic location and excellent workforce. Without our regional and state partners, we would not have been as competitive."