Caterpillar Incorporated announced Friday it is spending $200 million to modernize its East Peoria Component Facility.
Caterpillar produces undercarriage parts for its tractors at the East Peoria plant.
During a news conference, company officials said the modernization of equipment at the facility will take place over the next three to four years.
The modernization plan includes a fully automated, technologically advanced machining center.
"This first machining system will transform the operations and responsiveness of our East Peoria facility," said Greg Folley, Caterpillar Vice President with responsibility for the Remanufacturing & Components Division. "We are in an extremely competitive business, and our ability to continue to compete from our long-standing and historic Illinois operations demands that we invest in state-of-the-art technology and processes."
Caterpillar Group Vice President Stu Levenick says though the investment will not create more jobs, it will make the plant 30 percent more efficient.