The company has released another core measure of its long-term investment strategy in China
Beijing, August 28th (Xinhua) -- Caterpillar Inc. (New York Stock Exchange code: CAT) announced today that it will produce advanced small and medium-sized diesel engines in Wuxi, Jiangsu Province, China. Settling the engine production area in Wuxi not only aligns with Caterpillar's overall global engine strategy, but also aligns with its established business model in China. This measure is an important component of Caterpillar's rapid development in China. At present, Caterpillar has signed a non binding letter of intent with Wuxi National High tech Industrial Development Park. The letter of intent indicates that the company will soon make long-term investments in the development and manufacturing of Perkins and Caterpillar branded engines in Wuxi. The first batch of engines to be put into production in Wuxi this time include the Perkins 400 series 3-cylinder and 4-cylinder diesel engines.
Hans Haefeli, Vice President of Caterpillar, responsible for the Industrial Power Systems Department and Perkins Engine Business, said, "The 400 series engines are highly favored by global original equipment manufacturers (OEMs). The establishment of an engine factory in China will further enhance the global supply capacity of this engine series. This new factory can better ensure the ordering demand of the 400 series engines from OEMs in China and the Asia Pacific region."
Perkins Engines Company, Ltd. is a subsidiary of Caterpillar. It has established a joint venture with its partner in the production of small engines, IHI Shibaura Machinery Corporation, known as Perkins Shibaura Engines. The joint venture company will produce Perkins branded engines in Wuxi. The Perkins 400 series engines produced in Wuxi are mainly aimed at Asian original equipment manufacturers and are suitable for the production of machinery and generator sets in the following industries: construction, agriculture, earthmoving machinery, and material handling.
Caterpillar also announced plans to produce medium-sized diesel engines in Wuxi. Caterpillar plans to focus its engine development work on Wuxi to meet the emission standards requirements of China and other customers. The medium-sized engines produced in Wuxi will be equipped with Caterpillar branded engineering machinery, power generation equipment, and commercial ship applications, and will also be sold to original equipment manufacturers for use in agriculture and other industrial applications. After the engine factory in Wuxi is completed and fully put into operation, its engine production can reach over 100000 units per year.
"As a leader in cutting-edge clean engine technology, Caterpillar is making significant investments in China and will produce world-class, clean diesel engines. As Chinese customers face increasingly stringent emission requirements, Caterpillar can continue to provide advanced machines and clean engines to ensure sustainable development," said Doug Oberhelman, the President of Caterpillar's global engine affairs group
The initiative to build an engine factory in Wuxi still requires the final agreement between Caterpillar and the Wuxi Municipal Government, as well as approval from relevant government departments.
"For over 30 years, Caterpillar has brought unprecedented value to Chinese customers who own and use Caterpillar machines and engines. The decision to manufacture these engines in China once again fully reflects our long-term commitment to this crucial market in China and our customers," said Rich Lavin, Vice President of Asia Pacific Operations at Caterpillar and Chairman of Caterpillar (China) Investment Co., Ltd
Caterpillar's core products manufactured in China include hydraulic excavators, tracked bulldozers, graders, and road equipment, as well as large diesel engines used in ships and power generation, including generator sets suitable for China and the Asia Pacific region. Caterpillar also has multiple component manufacturing plants in China. In addition, Caterpillar also holds a minority stake in Shandong Machinery Co., Ltd. (SEM). The company is also one of the leading manufacturers of wheel loaders in China.
In addition to having manufacturing plants in China, Caterpillar's business in China also includes logistics, remanufacturing, financing leasing, training, marketing, and technology research and development. At the same time, Caterpillar's independent agent network also provides sales and product support services to customers throughout Greater China.
About Perkins Shibaura Engines
Perkins Shibaura Engines, Ltd. is a joint venture established by Perkins Engines Company, Ltd. and Japanese manufacturer IHI Shibaura Machinery Company (ISM). The company was established in 1996 and is located adjacent to the Perkins Engine Manufacturing Plant in Peterborough, UK. This factory initially produced Perkins 100 series engines.
Since 1940, ISM has been producing agricultural equipment and engines, and has become one of the main suppliers of small engines and tractors in Japan. ISM Corporation is affiliated with IHI Corporation (which is also one of the larger industrial companies in Japan).
Perkins Engine Company is a wholly-owned subsidiary of Caterpillar and a major global supplier of off road diesel and natural gas engines, primarily targeting the engine market of 4-2000 kW (5-2600 hp) power. The main advantage of Perkins engines is the ability to tailor their engines according to customer needs. Its annual engine production reaches over 400000 units (equivalent to manufacturing one unit per minute), and its technical specifications also reach up to 21000.
About Caterpillar Inc
For over 80 years, Caterpillar has tirelessly worked to promote progress and drive positive and sustainable change on all continents. Caterpillar's global sales and revenue reached $41.517 billion in 2006, making it a leading manufacturer in the fields of construction machinery, mining equipment, diesel and natural gas engines, and industrial gas turbines. The company has also become a leading service provider through Caterpillar Financing Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services, and Progress Rail Services. For more relevant information, please browse http://www.cat.com Website.