Caterpillar announced a $1 billion investment to build a manufacturing facility in Sanford, North Carolina. The company stated the new plant will produce compact track loaders and telehandlers for small contractors and growing businesses. This announcement joins several other major industrial projects across the United States, including battery cell retooling in Tennessee, pharmaceutical expansion in Oregon, and defense manufacturing in Virginia.
What it means
Caterpillar said the Sanford facility will be a “modern, technology-enabled” factory featuring advanced manufacturing, automation, digital production systems, and integrated logistics capabilities. The investment targets the compact construction equipment market used in construction, landscaping, and agriculture sectors.
In Tennessee, Ultium Cells, a joint venture between LG Energy Solution and General Motors formed in late 2019, plans to invest $1 billion to retool its Spring Hill operations. Factory modifications are scheduled to begin later this year and finish by 2028. The project will enable the commercial production of lithium manganese-rich prismatic battery cells, a technology Ultium Cells claims offers a 33 percent increase in energy density compared to lithium iron phosphate cells. This expansion adds to more than $2.3 billion in initial investment and a separate $275 million expansion completed in 2022. The project is expected to create 500 jobs. Ultium Cells previously shut down its Ohio plant for seven months due to low consumer demand but restarted production there in August.
In Oregon, Genentech broke ground Monday on a $750 million expansion of its fill-finish operations in Hillsboro. The project adds 211,000 square feet to the 75-acre campus established in 2006, doubling the existing site size. Operations at the expanded facility are scheduled to begin in 2031. The expansion is expected to create 250 jobs and support medical fields including oncology, neurology, and immunology. This project is part of a broader $50 billion commitment by Genentech and Roche Group to increase their U.S. manufacturing and research footprint.
In Virginia, Avio USA broke ground Tuesday on a $500 million solid rocket motor manufacturing facility in Hurt. The 900,000-square-foot plant will produce thousands of solid rocket motors annually for Lockheed Martin and Raytheon. Construction is scheduled for completion by late 2028, with production starting in early 2029. The project is expected to create about 1,500 jobs in Southern Virginia. Gov. Abigail Spanberger announced the project in February. Avio USA is eligible for up to $97.7 million in special incentives.
Key facts
- $1 billion: Caterpillar investment for Sanford, North Carolina facility producing compact track loaders and telehandlers.
- $1 billion: Ultium Cells investment to retool Spring Hill, Tennessee plant for lithium manganese-rich prismatic battery cells.
- 500 jobs: Expected job creation from Ultium Cells expansion in Tennessee.
- 2028: Scheduled completion date for Ultium Cells factory modifications.
- $750 million: Cost of Genentech fill-finish operations expansion in Hillsboro, Oregon.
- 211,000 square feet: Space added by Genentech expansion, doubling existing site size.
- 250 jobs: Expected job creation from Genentech expansion.
- 2031: Scheduled start date for Genentech expanded facility operations.
- $500 million: Cost of Avio USA solid rocket motor manufacturing facility in Hurt, Virginia.
- 900,000 square feet: Size of the Avio USA plant.
- About 1,500 jobs: Expected job creation from Avio USA project.
- Early 2029: Scheduled start date for Avio USA production.
Source: Manufacturing Dive, reporting company announcements