Construction equipment manufacturer Caterpillar has broken ground for a new facility in Seguin, Texas, that the company says will create approximately 1,400 new jobs. According to the Texas governor's office, Caterpillar will invest $169.7 million to build the new engine assembly, testing, and paint plant, which will consolidate operations from factories in Illinois and South Carolina. "Caterpillar looks forward to the new engine facility in Seguin, which will allow us to improve process capability, flexibility, and flow of our operations to optimize efficiency," says Gary Stroup, a Caterpillar vice president. "This location brings us closer to our customers and supply base and, as a result, will reduce freight, logistics, and inventory costs." Seguin is in the San Antonio area. The Illinois-headquartered company has been offered financial incentives that include a $10 million grant from the state.