Caterpillar planning $60M expansion in Lebanon that would add nearly 700 jobs

Construction equipment manufacturer Caterpillar Inc. is planning a $60 million expansion of its logistics facility in Lebanon that could bring nearly 700 new jobs to the Boone County community.

Eric Newkirk, director of real estate and economic development for Fort Worth, Texas-based Caterpillar, told members of the Lebanon City Council on Monday night that the company plans to expand its existing 600,000-square-foot facility that it leases from Cabot Properties Inc. at 720 Edwards Dr. in Lebanon Business Park.

Caterpillar plans to add about 369,360 square feet in Lebanon. Newkirk said employees will pre-assemble engine parts that would then be shipped to Caterpillar’s Large Engine Center in Lafayette.

“This is to really increase the production and the volume that the main plant can generate through,” Newkirk told councilors. “So, it’s really the pre-assembly and getting that ready so when it’s on the line, it’s a lot quicker assembly time so that we can increase our production” in Lafayette.

Caterpillar’s project in Lebanon would create 550 new full-time Caterpillar positions and 129 positions that would be filled through staffing agencies. The average wage for hourly, non-salaried workers is expected to begin at $23 per hour and grow to $25.89 per hour by 2030, while salaried employees would earn an average of $75.75 per hour. Benefits would include medical, dental and life insurance as well as a 401(k) plan.

Newkirk said Cabot Properties plans to begin construction later this year on the expanded facility. New positions would be filled over the next two to three years.

City Council members unanimously approved an ordinance that includes a four-year, 30% personal property tax abatement on a $35 million personal property investment by Caterpillar. The abatement is projected to save the company $359,767.

The ordinance also includes a real property tax abatement on a $25 million real property investment by Cabot Properties that would save the company an estimated $761,250. The four-year abatement would provide abatements at 50% for each of the first two years and 25% abatements for the final two years.

Personal property includes new machinery, while real property is the facility itself.

Last year, Caterpillar announced that it would invest $725 million in Lafayette to build and equip a 300,000-square-foot addition to its 1.6 million-square-foot Large Engine Center and create 100 jobs over the next four years.

The Large Engine Center manufactures engines for a variety of applications, including oil and gas, electric power, marine, rail and mining.