The Lebanon City Council approved local incentives in support of Caterpillar’s planned expansion to its facilities. Photo from City of Lebanon.

News Release

LEBANON — A $60 million expansion is in the works from construction equipment producer Caterpillar Inc., adding almost 700 new jobs to its Boone County logistics facility.

Members of the Lebanon City Council Monday, June 9 were told by Caterpillar director of real estate and economic development Eric Newkirk that the company planned to grow its 600,000 square foot facility at 720 Edwards Drive, Lebanon Business park.

Around 369,360 feet would be added to the Lebanon location, which is leased from Cabot Properties, Inc. According to Newkirk, employees will assemble engine parts that the Forth Worth, Tex.-based company will ship to its Large Engine Center in Lafayette.

This new initiative would create 550 new full-time Caterpillar positions, and 129 positions fulfilled by staffing agencies. Non-salaried employees are expected to earn $23 per hour on average and grow to about $26 by 2030, while an average of $75 per hour would be paid to salaried workers. A 401(k) plan, along with dental, medical and life insurance would all be provided.

Cabot Properties plans to break ground later in the year, while new positions would be filled over the next two or three years, said Newkirk.

A personal property tax abatement of 30% over the next four years was unanimously approved by city council members. It will go towards Caterpillar’s $35 million personal property investment on the project, saving the company an estimated $359,767.

A real property tax abatement is also included for a $25 million real property venture by Cabot Properties, which would cover 50% for each of the first two years and 25% for the following two. It will save the company an estimated $761,250.

Real property covers the facility, while personal property covers new machinery.

The announcement comes after a similar declaration from Caterpillar last year. Caterpillar promised a $725 million Lafayette investment that would add 300,000 square feet to its 1.6 million-square-foot Large Engine Center, creating 100 jobs over the next four years. The Center produces engines for applications such as electric power, gas, marine, mining, oil and rail.