Plant & Equipment

Caterpillar to open new components facility in China

The new plant will produce undercarriage components and track assemblies, which are utilised on Cat hydraulic excavators.
Construction and modifications to pre-existing buildings will commence in 2011, with production scheduled for mid-2012.
?This new facility is our latest strategic investment to continue expanding our presence and capacity in the Asia/Pacific region,? said Stu Levenick, Caterpillar Group president with responsibility for customer and dealer support.
He added that Caterpillar is well positioned to meet the long-term demands of its customers in China and the Asia/Pacific region, in conjunction with its joint venture partner AsiaTrak Ltd, based in Tianjin, China, which also manufactures undercarriage components and track.
The 18,000m2 facility will be located in the Xuzhou Economic Development Zone. When fully operational and at full capacity, it will employ about 400 people.
?This is an exciting opportunity for us to better serve our customers and provide support in China and throughout the Asia/Pacific,? said Greg Folley, Caterpillar?s vice president with responsibility for the remanufacturing and components division. ?We are committed to meeting the needs of customers around the world, and believe the new facility will enable us to gain a leadership position in the undercarriage business in
China.?
Caterpillar officials expect to realise a number of cost-saving benefits from the new facility. It will be located adjacent to the Caterpillar Xuzhou Ltd hydraulic excavator facility, allowing shipment of finished undercarriage components to the Caterpillar machine facility for final assembly.
?The investment in infrastructure and urbanisation forecasted in China?s 12th five year plan should continue to drive long term demand for construction equipment. This new facility, producing high quality undercarriages for Cat excavators, further demonstrates our commitment to our customers? success, both in China and across the Asia/Pacific region,? said Kevin Thieneman, the Caterpillar country manager for China.

Source: Caterpillar Inc

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