CLAYTON -- N.C. Gov. Bev Perdue announced today that Caterpillar Inc., will expand its manufacturing facilities in Johnston County.

The company plans to create 199 jobs during the next five years and invest $33 million.

Caterpillar, located off N.C. 42 East in Clayton, is the largest maker of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines in the world.

The new project was made possible in part by state grants from the Job Development Investment Grant program and One North Carolina Fund.

"Creating jobs is my top priority," Perdue stated in a press release. "And the fact that globally competitive companies continue to make investments like these in North Carolina proves that our legacy of investing in education and worker training has paid off."

Perdue added that the state's "highly skilled and knowledgeable workforce" will serve Caterpillar's advanced manufacturing needs.

In Clayton, Caterpillar will expand its existing operations, part of Caterpillar's Building Construction Products (BCP) Division which celebrated its 20th anniversary in December.

Upon completion, the Clayton facility will be the world source for several models of small wheel loaders produced by Caterpillar which are used in road, utility and building construction and often sold to small, local contracting businesses.

Engineering and design work for BCP products will take place at a new engineering and test facility near Caterpillar's Clayton manufacturing facility.

"As we see global demand for our products increase, we continue to make long-term investments like this in our facilities to help meet customer needs," Mary Bell, Caterpillar vice president with responsibility for the Building Construction Products Division in Clayton, stated in a press release from the governor's office.

While individual wages for jobs will vary by job function, the overall average salary for these new jobs will be $41,466, plus benefits. The average annual wage in Johnston County is $31,460.

According to the press release, Caterpillar has been awarded a $400,000 grant from the state's One North Carolina Fund, which gives cash grants to attract business projects that the governor sees as vital toward growing the state's economy.

To earn the grant, companies must meet job creation and investment targets to receive payments. These grants also require local matching in funds, making this grant contingent upon local incentives.

The state Economic Investment Committee today also voted to award a Job Development Investment Grant to Caterpillar. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant.

If Caterpillar meets the targets called for under the agreement and sustains them for nine years, the JDIG could yield $1.644 million in maximum benefits for the company.

In addition, up to $548,000 could be added to the state's Utility Fund for infrastructure improvements in economically distressed counties. When a JDIG is awarded in counties such as Johnston, 25 percent of the grant is given to this fund to encourage economic development.

information provided by Clayton News Star