Caterpillar's Wuxi center, set up in 2009 in eastern Jiangsu province, will have a number of engine test cells for light, medium and heavy-duty, labs for fuel systems, electronics, hydraulics, among others, when the expansion is completed in June 2012, local government officials said.

The center will increase the number of engineers and support staff from current 500 to 800, and is expected to become Caterpillar's Asia-Pacific headquarters of research and development, they said Sunday.

"China is the largest construction equipment market in the world, and Caterpillar continues to invest in China to help our Chinese customers succeed and to position Caterpillar for long-term leadership in China," Caterpillar quoted its vice president Tana Utley as saying in a press release.

The U.S.-based company said it is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives with sales and revenues in 2010 reaching 42.588 billion U.S. dollars.