Thai Industry Minister Chaiwuti Bannawat on January 12th revealed that US-based Caterpillar, the world's largest manufacturer of heavy construction and mining equipment, had chosen Thailand as its base for production of bulldozer engines to supply clients worldwide.

He said the company announced its plans to establish its first manufacturing plant in Thailand so that it could use the plant to produce engines for mining bulldozers, which have business growth potential.

The company's decision to choose Thailand as its new production base in Asia underlined foreign investor confidence that Thailand remains one of the region's investment magnets. It would help attract other leading companies in the same industry with Caterpillar, into Thailand and the new production base will give local parts manufactures an opportunity to receive orders from the US manufacturer, he said.

Under the plan, Caterpillar will establish its first plant on a 60,000-square metre area. Construction of the plant is set to begin early this year with its operation expected to be intact late next year.

The plant is Caterpillar's third to be located overseas. The American company's other two offshore plants are situated in Australia and Brazil.

It is expected the project will help create at create 800 new jobs in Thailand.