Caterpillar to Build New Excavator Plant in China

Latest plant expansion in the region will produce four models of mini hydraulic excavators

Caterpillar Inc. plans to expand manufacturing in China with a new plant in Wujiang to produce mini hydraulic excavators, beginning in 2012. The equipment builder said the new operation will position it to meet growing customer demand in China and is part of its long-term capacity investment plan for that country.

The cost of the new plant was not announced. Work on the new plant is expected to begin late this year, pending approvals from governmental officials in Jiangsu province.

"During the past three decades Caterpillar has grown from a single sales office in Beijing to our cross-country footprint of today—which includes 11 manufacturing facilities, three research and development centers, nine offices and two logistics and parts centers," stated Jiming Zhu, Caterpillar vice president with responsibility for China. "We want Caterpillar customers to be more successful working with us, than they can be working with anyone else, and this new operation in Wujiang is the latest step in our long term strategy for helping our customers win in China."

Caterpillar Inc. plans to expand manufacturing in China with a new plant in Wujiang to produce mini hydraulic excavators, beginning in 2012. The equipment builder said the new operation will position it to meet growing customer demand in China and is part of its long-term capacity investment plan for that country.

The cost of the new plant was not announced. Work on the new plant is expected to begin late this year, pending approvals from governmental officials in Jiangsu province.

"During the past three decades Caterpillar has grown from a single sales office in Beijing to our cross-country footprint of today—which includes 11 manufacturing facilities, three research and development centers, nine offices and two logistics and parts centers," stated Jiming Zhu, Caterpillar vice president with responsibility for China. "We want Caterpillar customers to be more successful working with us, than they can be working with anyone else, and this new operation in Wujiang is the latest step in our long term strategy for helping our customers win in China."

Earlier this year the company indicated it will expand excavator manufacturing at its plant in Xuzhou, China. It expects excavator capacity in that country to increase almost four times once that expansion is completed in 2014.

"China is the world's largest market for excavators in the below 8-ton class, and the development of this new facility will better position Caterpillar to provide our customers in China with solutions that will help them succeed," stated Mary Bell, Caterpillar v.p. of Caterpillar’s Building Construction Products division.

Currently Caterpillar supplies Chinese customers with mini excavators produced at Xuzhou and in Sagami, Japan. Once the new plant in Wujiang is producing machines, thos operations will increase their output of other Caterpillar products.

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