Caterpillar Inc. is building a heavy-machine parts plant in Poland to meet growing demand in Western Europe, according to company officials.

Iron sub-assemblies and machine frames for heavy construction equipment will be manufactured at the plant, located in Sosnowiec, Caterpillar spokeswoman Lori Porter said.

Caterpillar has purchased the land and factory buildings, and the company will spend the next several months refurbishing the buildings so production can begin at the end of the year, Porter noted. The new plant is expected to employ about 40 people initially.

The company already does business in Poland, with a similar manufacturing facility in Janolubelski. A subsidiary that provides financing for Caterpillar customers also has an office in Warsaw.

"Cat has had a good experience in Poland and the country offers good political stability," Porter said. "The country has a well-trained and available work force, good infrastructure, transportation and has a good supplier base."

Last week, Caterpillar blamed a 26 percent decline in second-quarter earnings on lower sales and a stagnant economy, factors that also led the giant machinery manufacturer to lower its expectations for the year.

The Peoria, IL, -based company reported net earnings of $200 million, or 58 cents per share, down from $271 million, or 78 cents per share, in the same period last year.

Sales were $5.29 billion, down from $5.49 billion a year earlier.

Caterpillar makes mining, construction and agricultural machinery as well as engines for earth-moving and construction machines. It is the world’s No. 1 maker of earth-moving machinery.

The company operates manufacturing plants in 22 countries.