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Gov. Jack Dalrymple and Greg Folley, vice president of Caterpillar Inc.’s Remanufacturing & Components Division, announced yesterday that the heavy equipment manufacturing company plans a major expansion at its West Fargo plant.
In August, Caterpillar officials will begin a $50 million expansion project that will create about 250 new jobs during the next three years, nearly doubling the West Fargo plant’s current workforce of 300 employees. The project includes building a 225,000-square-foot addition to the West Fargo plant where Caterpillar employees remanufacture parts for Caterpillar mining equipment. The expansion project is slated to be completed in June 2012. In April, Dalrymple, the North Dakota Department of Commerce, the city of West Fargo Economic Development and the Greater Fargo-Moorhead Economic Development Corporation began contacting officials at Illinois-based Caterpillar, encouraging them to consider West Fargo for their expansion plans.
“We emphasized that Caterpillar would benefit from a workforce that is second to none, that they would benefit from a responsive state government with strong business support services and that they would also benefit from low corporate and property taxes,” Dalrymple said. “With many remanufacturing facilities throughout the United States and the world, Caterpillar had many site options for this expansion. We’re pleased that they appreciate our business climate and we look forward to their growing business presence in North Dakota.”
Caterpillar’s remanufacturing operations return end-of-life components to their original condition in terms of reliability, durability and performance. The West Fargo expansion will help Caterpillar meet the strong demand for remanufactured drive train components for large, off-highway trucks and other mining equipment, including final drives, transmissions, torque convertors and steering clutches.
The plant’s expanded footprint will house high-tech machining, metal additive processes and a state-of-the-art metal sciences lab which will support the company’s increased production of remanufactured parts and advanced wear coatings.
In 2008, Caterpillar purchased the West Fargo remanufacturing plant from Gremada Industries which was established by Greg, Matthew and David Butler in 1962. With the assistance of business loans provided by the Bank of North Dakota and with workforce training assistance provided by North Dakota Job Service, Gremada’s business expanded to include more than 200 employees.