PEORIA, Ill. (AP) Caterpillar Inc. plans to spend about $180 million to expand its manufacturing capacity in Brazil and meet growing demand in Latin America.

The world’s largest maker of construction and mining equipment said Sept. 1 that it had purchased an existing manufacturing plant in Campo Largo, Brazil, and over the next two years, it plans to expand its existing plant at Piracicaba, Brazil.

Caterpillar said the Campo Largo facility will produce backhoes and small-wheel loaders used in construction. It is expected to begin production during 2011, and it will employ as many as 1,000 people at full capacity.

Caterpillar’s Rich Lavin said this Brazilian expansion will help the company based in Peoria, Ill., serve its growing customer base in Latin America.

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