Mumbai: Commercial vehicles maker, PACCAR Inc (Nasdaq: PACR), the 489th largest public company in the world, has unveiled plans for a new $400 million powertrain manufacturing and assembly facility in the US. Construction of the facility will begin in mid-2007 and is targeted for completion in 2009.

"This significant investment in a new powertrain facility, as well as a technology centre, will ensure that PACCAR maintains its position of global technology leadership and meets customer requirements," said Mark Pigott, chairman and chief executive officer.

PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. It also provides financial services and information technology and distributes truck parts related to its principal business. PACCAR's technology centre is due to open in 2009.

On the new plant, Piggott says, "The 400,000-square-foot facility strengthens PACCAR's global manufacturing and assembly capability and positions PACCAR to capitalise on growing opportunities in North America, Europe and Asia,"

"The $400 million investment in PACCAR's newest facility complements the $2.5 billion invested over the last ten years to accelerate award-winning product development, Six Sigma implementation, customer after sales support and dynamic information technology programs in our capital goods and financial services markets," added Pigott.

PACCAR earned a record $1.1 billion on revenues of $12.2 billion in the first nine months of 2006 and over the last 10 years has consistently achieved a 22-per cent compound annual growth rate (CAGR) of earnings per share, posting total shareholder returns averaging 25.4 per cent per year, versus 8.4 per cent annual return for the Standard & Poor's 500 Index over for the last decade.

Piggott says, "PACCAR's outstanding profits, excellent balance sheet and intense focus on quality, technology and productivity enhancements have enabled the company to consistently invest in its products, services and processes during all phases of the business cycle."

According to Tom Plimpton, president, "This will be PACCAR's most technologically advanced facility and reinforces our efficient manufacturing platform that builds the highest-quality products in the industry. The manufacturing facility will be configured for maximum flexibility to supply products and components to PACCAR facilities and customers on a global basis." Plimpton noted, "DAF, Kenworth and Peterbilt products have the best resale value in the industry and deliver the lowest operating cost for our customers."

The DAF XF105 earned the prestigious International Truck of the Year 2007 award and has won the award three times in the last ten years.In the United States, its other brands, Kenworth and Peterbilt have earned 20 J D Power and Associates customer satisfaction awards, ahead of all manufacturers in the medium- and heavy-duty truck categories.

Says Jim Cardillo, executive vice president, "PACCAR has learned from DAF and its customers the performance and cost advantages of installing its own powertrain, as well as the benefits of additional aftermarket parts and service business for our dealers. Offering a PACCAR powertrain to our North American customers will provide dditional choices in their vehicle specifications," added Cardillo.