In a just signed agreement, Caterpillar will use Wacker Neuson to develop and manufacturer its compact excavators under 3 metric tons starting in mid 2011.

Under the 20-year agreement, three current Cat compact machines will be produced in Wacker Neuson’s Linz, Austria, production plant. Caterpillar plans to extend the model range up to seven machines, starting with a .8-metric-ton unit. The excavators will be distributed by Cat’s global dealer network, with the exception of Japan. The Cat models will “be clearly differentiated” from comparable Wacker Neuson models in the same product range.