Relocation would allow Japanese subsidiary Caterpillar Japan Ltd., which has been running the Akashi factory, to better serve customers in China and other Asian markets, the Peoria, Illinois-based maker it said.

"Based on Caterpillar's current long-term forecast for the Asia- Pacific region, it is possible Akashi may need to increase capacity and employment to help meet demand," Caterpillar said in a press statement.

Caterpillar said it would "triple the current capacity of hydraulic excavators now produced by the company in the U.S." if it decides to go ahead with the relocation.

If it builds a new excavator facility in the United States, it would manufacture several excavator models now produced in Akashi and exported to the U.S. market, in addition to the two models currently produced at an Aurora, Illinois-based plant.