Caterpillar on Course for Continued Growth in China
biz.yahoo.com
Friday August 19, 10:09 am ET
New initiatives and Board of Directors meeting in China reaffirm Caterpillar's commitment and growth strategy for this market
SHANGHAI, People's Republic of China (PRC), Aug. 19 /PRNewswire-FirstCall/ -- Caterpillar Inc. (NYSE: CAT) subsidiaries in China have signed three non-binding memoranda of understanding (MOUs) with an industrial park development company affiliated with the Shanghai Municipal Government. The MOUs demonstrate Caterpillar's continued commitment to customer service and growth in this critical market.
The following three MOUs involve the Shanghai Lingang Economic Development Co., Ltd. (Lingang Group), which is currently developing the world's largest industrial park:
-- Lingang Group and Caterpillar reaffirmed their commitment to the
success of Caterpillar's China Distribution Center in the Lingang
Industrial Area and to the establishment of a regulatory system that
facilitates trade and investment in the region.
-- Caterpillar Remanufacturing Services will use its proven record in the
area of remanufacturing to establish the Lingang Industrial Area as
the premier remanufacturing center in China to support Caterpillar
customers and dealers in China and the Asia Pacific region.
-- A proposed service consortium alliance between Caterpillar Logistics
Services and Lingang Group would establish a one-stop service center
to attract investors and clients to the Lingang Industrial Area,
leveraging the strengths of Caterpillar's service companies.
"I have visited China regularly over the last 20 years and have witnessed the nation's extraordinary economic growth and development during that time," said Caterpillar Chairman and CEO Jim Owens. "Caterpillar has also grown during that time, and these initiatives are tangible examples of our plans for future growth across all lines of Caterpillar's business in China."
Owens noted that Caterpillar's Board of Directors recently held its first ever meeting in China, as the company's executive leadership team outlined for the board Caterpillar's plan to implement its global business model in China.
Caterpillar has a long history in China. The company sold its first products there in 1975 and opened an office in Beijing in 1978. Beijing is home to Caterpillar's marketing headquarters for China, and it is also the headquarters for Cat China Financial Leasing.
In the 1980s, Caterpillar launched technology transfer agreements with Chinese manufacturers who began building Caterpillar licensed products. Caterpillar's expansion in China accelerated in the early 1990s with the establishment of a more aggressive local production strategy. Today, Caterpillar operates 10 facilities -- both joint venture and wholly owned businesses -- which, together with its network of independent Caterpillar dealers, offer customers in China the best-in-class products, services and support that have made it a global leader.
The city of Qingdao in Shandong Province is the location for an Innovation Center that will leverage Caterpillar's global technical resources to develop the products and processes necessary to support the China market. This investment will provide engineering and technical support for Caterpillar's China based operations, including the recently announced investment in Shandong SEM Machinery Co., Ltd., one of China's leading wheel loader manufacturers. Earlier this year, Caterpillar acquired a minority stake in SEM with an option to purchase the remaining equity in 2007. In addition, Caterpillar is engaged in preliminary discussions with other Chinese manufacturers, which could result in additional future investments. |
