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Caterpillar Invests $90 Million to Build New Engine in Central Texas

Construction and mining equipment giant Caterpillar plans to spend tens of millions of dollars on its operations in suburban San Antonio in the comin...

Caterpillar Invests $90 Million to Build New Engine in Central Texas

Construction and mining equipment giant Caterpillar plans to spend tens of millions of dollars on its operations in suburban San Antonio in the coming months, company officials announced.

Money Split Between Two Facilities

The company expects to invest $90 million between two facilities: $70 million will go to its location in Schertz, Texas, while $20 million will be directed to a plant in nearby Seguin, Texas.

Manufacturing, Assembling a New C13D Industrial Engine

The funding will enable the Schertz site to build components for the company’s new C13D industrial engine, while the Seguin location will assemble completed engines.

Caterpillar officials said the C13D, a 13-liter diesel system, would optimize performance in heavy-duty applications, including material handling and aircraft ground support, in addition to mining and construction.

Mark Stratton, the general manager for large engines in the company’s industrial power systems segment, said the parts and engines produced in Schertz and Seguin would help Cat customers build “a better” and “more sustainable” world.

New Jobs in 2026

Production of the new engines is expected to begin in 2026, and the Schertz location is projected to add 25 jobs beginning that year. The new equipment installations will not affect the sites’ current production of the company’s Cat and Perkins engines and generators.

Adding onto Texas Operations

The investment bolsters the manufacturer’s operations in Texas, where it relocated its headquarters beginning in 2022 after about a century in Illinois.

Image Credit: Shutterstock.com / Kzenon

Ray Diamond
Ray Diamond
Ray is an expert in grinding polycrystalline diamond (PCD) and cubic boron nitride (CBN) tools. He works with technologies like laser machining, EDM, and CBN wheels to deliver ultra-precise results for hard and brittle tool materials.