Caterpillar Inc, (www.caterpillar.com), the world's largest producer of bulldozers and excavators, has taken full ownership of Shandong SEM Machinery Co.
Caterpillar said the purpose of the acquisition was to meet the growing customer demand for its products in China.
Shandong SEM Machinery Co. is a loading machine maker in northern China. In 2005, Caterpillar bought a 40 percent interest of the China-based machine maker to support its growing customer base in China's construction equipment industry.
The recent takeover, which has received approvals from China's authorities, made Shandong SEM Machinery Co, a wholly owned subsidiary of Caterpillar in China. Detailed financial terms concerning the deal were not disclosed.
Caterpillar also produces hydraulic excavators, motor graders, paving products, large diesel engines and generators in China under the SEM tradename. Those products are sold in China and elsewhere in the Asia-Pacific region.
Shandong SEM produces machines used for scooping and carrying earth or coal.