The $33 million investment over five years will mean 199 new jobs.
The company said its Clayton facility will produce several models of small wheel loaders.
"As we see global demand for our products increase, we continue to make long-term investments like this in our facilities to help meet customer needs," said Caterpillar Vice President Mary Bell in a statement.
While wages for the new jobs will vary, the overall average will be $41,466, plus benefits.
Caterpillar got an incentive to bring the new jobs to North Carolina in the form of a $400,000 grant from the state's One North Carolina Fund.