The plan to nearly double production from 11,000 to 20,000 units over the next four years has already seen 300 shop floor agency staff offered permanent jobs.
Eventually many more jobs will be created by the move to up production.
Its investment pot will be split between the Desford assembly plant in Leicestershire and its fabrications facility in Stockton.
UK managing director Robert Droogleever said the move was a vote of confidence in the county and regional economy and UK manufacturing.
He said: “Our workforce have demonstrated that they have the capability to design and assemble world-class products in Desford and Stockton.
“With more than 90 per cent of our products being exported, it sends a strong signal about the ability of UK-based manufacturers to be globally competitive.”
Caterpillar’s decision to switch the manufacturing of centre pivot backhoe loaders from the US to Desford last April has helped the factory to benefit from the upturn in overseas demand.
It’s UK division saw profits recover strongly last year to £26m last year as turnover rose morte than doubled to £607m.
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