Caterpillar Paving Products will build a $3 million addition at its Brooklyn Park machine factory, officials said Friday.

The business, a division of Peoria, Ill.-based Caterpillar Inc., expects to add 31 new workers as a result of the factory expansion on 85th Avenue N. in Brooklyn Park.

The plant is where Caterpillar makes hefty paving machines used in road and highway construction. The addition also will give the company much needed plant upgrades, officials said.

Caterpillar Paving now employs about 700 at the site in Brooklyn Park and one in Maple Grove.

The state of Minnesota is contributing a $307,300 job ­creation grant to the project.

The funds, to be administered by the Minnesota Department of Employment and Economic Development, will be awarded to Caterpillar only after it meets it hiring and investment commitments.

“The company’s expansion in Brooklyn Park is terrific news for the community and will position Caterpillar to continue growing its paving products business for years,” said the department’s deputy commissioner, Kevin McKinnon. “Caterpillar is one of the world’s most respected and recognized brands.”

The state’s job creation fund has awarded $19 million to 36 companies since January 2014. Those companies plan to spend $376 million on expansions and have pledged to hire 2,156 full time workers.

In addition to Caterpillar, other manufacturers newly approved to receive post-expansion job grants include Dubow Tile in St. Cloud; ­window and door maker Andersen Corp. in North Branch and Cottage Grove; and Smiths Medical, which is expanding from Arden Hills to Plymouth. Combined, the three companies have pledged to create 382 new jobs.

The list of recent grantees also includes Daikin Applied Americas Inc., which is building a $9 million addition to its Owatonna plant.