Caterpillar picks Schertz, Texas for new manufacturing operation
Schertz, Texas, October 21, 2010 – The City of Schertz and Comal County finalized negotiations today to provide economic development incentives to Caterpillar for the construction of a 260,000-square-foot manufacturing facility in the city. The location will be a completely new operation and will house the company’s engine head machining operations and will supply Caterpillar’s assembly plant in nearby Seguin. The move is part of Caterpillar’s major restructuring and reinvestment strategy in its U.S. operations designed to enable the company to remain globally competitive for the long term.
“Caterpillar is committed to maintaining its leadership position throughout the world, and the Schertz facility in Comal County plays an important role in our plans to provide customers with the products and solutions they need to help them with their businesses,” said Kate Kenny, Caterpillar spokesperson. “The new facility allows the company to optimize efficiency by improving process capability, flexibility and flow of its overall operations. The Schertz location will additionally help reduce freight, logistics and inventory costs, as Caterpillar will be located closer to its supply and customer bases.”
Caterpillar announced in 2008 it was exploring various locations to accommodate its engine business and the various components involved in the complete engine assembly process. Royal Oak Industries (ROI) will manage the day-to-day functions of the facility. ROI has been successful with similarly operated Caterpillar engine related facilities in San Antonio and Seguin.
The Schertz facility will employ approximately 60 workers and construction begins before the end of the year, with production expected to start in late 2011. As part of the agreement, Schertz City Council approved incentives for additional phases if Caterpillar chooses to expand the facility beyond its initial footprint with new buildings and machinery.
Schertz’s Mayor Hal Baldwin said: “The company’s decision to locate in Schertz is a testament to the City’s pro-business attitude and the region’s overall strength as a location for manufacturing companies. We are excited about Caterpillar’s selection of Schertz for its newest manufacturing facility and are pleased that the City can be a part of its U.S. reinvestment strategy.”
Michael Meek, President of the New Braunfels Chamber of Commerce, was responsible for working with Comal County Commissioners to secure economic development incentives. The incentives proved to be the final piece Caterpillar needed before announcing the expansion facility.
“Comal County Commissioners have helped improve the local tax base again with this agreement. Land returning $17 annually will soon be transformed to a job-creating facility run by a well known and respected corporate citizen worldwide,” Meek said.
The project had been in the works for some time and city officials and county representatives had met with Caterpillar and ROI officials for a year prior to the announcement. “ROI’s existing facility in San Antonio is top-notch in terms of its efficiency, safety and sophistication. We’re pleased they have chosen to invest in a similar facility in our city,” Schertz City Manager Don Taylor added.
As part of the incentive package, the City of Schertz approved a 75 percent tax credit for 8 years on the company’s business personal property. Comal County also offered a tax credit agreement.
The facility will be located in the Tri-County Business Park at the northwest corner of Doerr Lane and Lookout Road.