Caterpillar Bankrolls $90M Diesel Engine Factory Upgrades

The $90 million investment aims to prep facilities in Texas to produce the new Cat C13D industrial engine.

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Caterpillar Inc. has announced a $90 million investment to prepare its facilities in Schertz and Seguin, Texas, to produce the all-new Cat C13D industrial engine. The investment will create 25 jobs at Schertz starting in 2026.

"We appreciate the support from the local community as we prepare our Seguin and Schertz facilities to produce the C13D engine," said Mark Stratton, vice president and general manager of Caterpillar's Industrial Power Systems - Large Engines. "The Caterpillar team in Texas will produce the quality parts and engines we need for our customers as we help them build a better, more sustainable world."

The C13D is a new 13-liter diesel engine platform designed to achieve best-in-class power, density and fuel efficiency. The engine optimizes the performance of heavy-duty off-highway applications such as material handling, construction, mining, and aircraft ground support.

The investment includes new equipment installations at both facilities, $70 million in Schertz to make C13D engine components and $20 million in Seguin to assemble the engines. The new equipment installations will not impact current operations, which include manufacturing Cat and Perkins engines and generator sets. C13D engine production is slated to start in 2026.