Nebraska-based farm equipment maker Orthman Manufacturing is expanding in its hometown of Lexington.

The company told employees on Monday that it's building a new plant. Owner John McCoy says the expansion is driven primarily by the farm economy and a growing demand for the company's products overseas.

McCoy says the company will maintain some manufacturing at the original plant northeast of Lexington but will close another plant east of Lexington. McCoy expects the new plant to be ready in 2012.

Orthman Manufacturing has about 300 employees, with plans to hire more. It makes cultivators, scrapers, grain carts and other equipment.