Caterpillar to Invest $1 Billion in Sanford Facility
Caterpillar Inc. has announced plans to invest $1 billion in a new Sanford manufacturing facility, which is expected to create more than 1,950 jobs with an average annual wage of at least $65,528.
The announcement marks the second major expansion by Caterpillar for Lee County, following its May plan to add about 600 jobs at its existing facility. The new facility will expand manufacturing capacity for Caterpillar’s growing Cat Compact business and increase production of compact track loaders and telehandlers, equipment used in construction, landscaping, agriculture, and material handling.
Caterpillar Construction Industries Group President Rod Shurman stated that the plant will be a modern, technology-enabled manufacturing operation incorporating advanced manufacturing technologies, automation, digital production systems, and integrated logistics. The company selected North Carolina due to its existing presence in the state, the strength of the local workforce, and the opportunity to build on its manufacturing expertise and operations in Sanford.
The Lee County Board of Commissioners approved up to $46 million in incentives for the expansion, structured as 12 annual cash tax rebates equivalent to 80% of the property taxes on the added value created by the new investment. Caterpillar must first pay the applicable property taxes before receiving the local incentive payments.