Caterpillar Inc. says it will spent $640 million to upgrade plants in East Peoria and Decatur, creating 300 new jobs.
A company spokesman says Caterpillar will make more tractors in East Peoria and more trucks in Decatur.
Friday's announcement comes two months after Caterpillar said it would spend $200 million to modernize part of its East Peoria plant.
The company also said Friday that it would seek to buy a Chinese maker of mining machinery for as much as $886 million. That deal needs the approval of China's Ministry of Commerce and other regulators.