Video: On CNBC, Beebe Says Arkansas Ready for Another Caterpillar Plant

Heavy-equipment maker Caterpillar Inc. of Peoria, Ill., is moving a manufacturing plant to North America from Japan, and Arkansas wants to be its new home.

CNBC reported Friday that Arkansas is one of two dozen states that want to be considered for the plant, which would make the mini hydraulic excavators that are in increasing demand in North America.

Caterpillar announced in November its intention to shift production from Sagami, Japan, as demand for the equipment wanes in Asia. Excavators made in the United States would be sold to customers in North and South America and Europe, the company said.

The plant would employ more than 1,000 people, Caterpillar said. The company expects to make a decision by April 1.

Caterpillar already has a two-year-old motor grader manufacturing plant in North Little Rock. The $140 million plant employs 550 people.

Appearing live from the North Little Rock plant on CNBC Friday, Gov. Mike Beebe said Arkansas would be an ideal spot for the new plant, citing the site’s central location and river access, as well as Arkansas’ tax structure and incentives.

Beebe also cited Arkansas’ workforce.

"Arkansas has been committed to tying education and workforce training to the specific needs of business and industry, and particularly manufacturing," Beebe said. "Nobody in the country is going to do a better job of trying to provide the quality workforce than Arkansas."

CNBC’s report said the University of Arkansas at Little Rock’s Donaghey College of Engineering and Technology has geared some of its training toward the skills Caterpillar requires.

Kelley Bass, assistant dean for external affairs at the college, said Caterpillar has already hired six EIT graduates. Five EIT students also work there as interns, with the school now looking to fill a sixth internship, Bass said.

‘At Or Near the Top’

Speaking at an Arkansas Economic Development Foundation luncheon in Little Rock in October, Caterpillar CEO Doug Oberhelman praised Arkansas’ economic development efforts, calling them "at or near the top" of those he’s seen in other states.

"I think Arkansas gets it," he said. "I’m not sure many other states do."
Oberhelman also hinted at expansion possibilities in North Little Rock, but provided no details at the time.

Luring Caterpillar to Arkansas was part of an effort years in the making. The state and city of North Little Rock also committed to a list of incentives.

To supplement the $3 million Beebe offered up out of the Governor’s Quick Action Closing Fund, North Little Rock:

• Spent about $8 million to build a new power substation

• Spent $800,000 for a wastewater treatment facility at the site

• Committed more than $2 million in electricity subsidies over five years

• Provided carbon offset "green tags"

• Waived all building fees.

The company also received standard state incentives based on job creation and pay.

Click below to watch CNBC’s segments live from North Little Rock’s Caterpillar plant, which include an interview with Beebe.