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According to Spanish newswire EFE, work began on the factory in Cienega de Flores, in the northern Nuevo Leon state on November 8.
Caterpillar Mexico chief Ron Riekena told media at a cornerstone ceremony, also attended by state governor Rodrigo Medina, that 1000 direct jobs would be created at completion.
According to the EFE report, the Nuevo Leon state was chosen for its access to transport and skilled workers as well as good infrastructure.
The facility should be completed in late 2014.
