Caterpillar (CAT) is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.[Photo/CFP]

Caterpillar Inc said it plans to open a new manufacturing facility in China to produce undercarriage components used in hydraulic excavators, Reuter reported Tuesday.

The facility will be located in the Xuzhou Economic Development Zone and when fully operational will employ about 400 people, Caterpillar said in a statement.

Production at the facility is scheduled for mid-2012, the company said.

Shares of the company closed at $100.72 on Monday on the New York Stock Exchange.