Caterpillar Continues Build Out of Business Model in China; Announces Grand Opening of New Facility and Completed Expansion of Another Facility in Wuxi, China With the opening of the new facility in Wuxi, China, Caterpillar now has 24 factories operating in China
BEIJING, March 25, 2013 /PRNewswire/ -- Focusing on the long-term opportunities related to economic development and infrastructure investment planned for China, Caterpillar Inc. (NYSE: CAT) executives today announced the opening of a new facility and the completed expansion of another facility in Wuxi, China. Caterpillar opened its 23,000-square-meter power train facility in Wuxi to produce axles, transmissions and final drives for use in a range of Caterpillar earthmoving and mining machinery. The company has also completed a 17,000-square-meter expansion at an existing component facility in Wuxi to produce hydraulic cylinders for Caterpillar machines. Both facilities are part of Caterpillar's Advanced Components & Systems Division which designs and manufactures technologically advanced components for Caterpillar machines and customers around the world.
"Success in China is an important part of our long-term strategy, and we are focused on bringing the complete Caterpillar business model to China in order to better serve and support our customer base," said Caterpillar Chairman and CEO Doug Oberhelman.
With the opening of the new power train operation, Caterpillar now has 24 manufacturing facilities in China in addition to four Research & Development (R&D) centers and three logistics and parts centers. The company has more than 15,000 employees in China.
"Over the decades, Caterpillar has developed a reputation for providing customers the lowest overall owning and operating costs for the life of a machine. This is heavily influenced by our vertical integration and ability to maximize productivity and deliver fuel efficient machines by integrating across the power train. This expansion of our component capability and capacity in China supports our drive to bring this value to our customers in China," said Ed Rapp, Caterpillar group president with responsibility for Construction Industries.
Oberhelman and Rapp announced the new facilities following their participation in the 13th annual China Development Forum, a Beijing-based event that brings together Chinese and multinational business leaders, academics and senior Chinese government officials to discuss economic and business trends and to share global best practices.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2012 sales and revenues of $65.875 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.
Certain statements in this press release relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets we serve; (ii) government monetary or fiscal policies and infrastructure spending; (iii) commodity or component price increases, fluctuations in demand for our products, or limited availability of raw materials and component products, including steel; (iv) our and our customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks and instability, including national or international conflicts and civil unrest; (vi) our and Cat Financial's ability to: maintain credit ratings, avoid material increases in borrowing costs, and access capital markets; (vii) the financial condition and credit worthiness of Cat Financial's customers; (viii) changes in interest rates or market liquidity; (ix) changes in financial services regulation; (x) inability to realize expected benefits from acquisitions, including ERA Mining Machinery Limited, and divestitures, including the divestiture of the Bucyrus International, Inc. distribution business to our independent dealers; (xi) international trade and investment policies; (xii) market acceptance of our products and services; (xiii) changes in the competitive environment, including market share, pricing and geographic and product mix of sales; (xiv) successful implementation of capacity expansion projects, cost reduction initiatives and efficiency or productivity initiatives, including the Caterpillar Production System; (xv) inventory management decisions and sourcing practices of our dealers or original equipment manufacturers; (xvi) compliance with environmental laws and regulations; (xvii) alleged or actual violations of trade or anti-corruption laws and regulations; (xviii) additional tax expense or exposure; (xix) currency fluctuations; (xx) our or Cat Financial's compliance with financial covenants; (xxi) increased pension plan funding obligations; (xxii) union disputes or other labor matters; (xxiii) significant legal proceedings, claims, lawsuits or investigations; (xxiv) compliance requirements imposed if carbon emissions legislation and/or regulations are adopted; (xxv) changes in accounting standards; (xxvi) failure or breach of information technology security; (xxvii) adverse effects of natural disasters; and (xxviii) other factors described in more detail under "Item 1A. Risk Factors" in our Form 10-K filed with the SEC on February 19, 2013 for the year ended December 31, 2012. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.