August 1, 2011
Caterpillar to Open Facility in China to Produce Undercarriage Components for Hydraulic Excavators
PEORIA, Ill., Aug. 1, 2011 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced today that it plans to open a new manufacturing facility in Xuzhou, Jiangsu Province, China. Construction and modifications to pre-existing buildings will commence in 2011, with production scheduled for mid-2012. The facility will produce undercarriage components and track assemblies, which are utilized on CatÃ® hydraulic excavators.
"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. "Together with our joint venture, AsiaTrak, Ltd., in Tianjin, China, which also manufactures undercarriage components and track, Caterpillar is well positioned to meet the long-term demands of customers in China and Asia/Pacific."
The 18,000 square-meter (193,750 square-foot) facility will be located in the Xuzhou Economic Development Zone. When fully operational and at full capacity, it is expected to employ about 400 people.
"This is an exciting opportunity for us to better serve our customers and provide support in China and throughout Asia/Pacific," said Greg Folley, Caterpillar vice president with responsibility for the Remanufacturing & 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 realize 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 urbanization 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.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 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, Caterpillar Logistics 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. These statements are subject to known and unknown factors that may cause Caterpillar's actual results to be different from those expressed or implied in the forward-looking statements. 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 Caterpillar does not undertake to update its forward-looking statements.
It is important to note that Caterpillar's actual results may differ materially from those described or implied in its 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 Caterpillar serves; (ii) government monetary or fiscal policies and government spending on infrastructure; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) Caterpillar's and its customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks associated with our global operations, including changes in laws, regulations or government policies, currency restrictions, restrictions on repatriation of earnings, burdensome tariffs or quotas, national and international conflict, including terrorist acts and political and economic instability or civil unrest in the countries in which Caterpillar operates; (vi) Caterpillar's and Cat Financial's ability to maintain their respective credit ratings, material increases in either company's cost of borrowing or an inability of either company to access capital markets; (vii) financial condition and credit worthiness of Cat Financial's customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) international trade and investment policies, such as import quotas, capital controls or tariffs; (x) the possibility that Caterpillar's introduction of Tier 4 emissions compliant machines and engines is not successful; (xi) market acceptance of Caterpillar's products and services; (xii) effects of changes in the competitive environment, which may include decreased market share, lack of acceptance of price increases, and/or negative changes to our geographic and product mix of sales; (xiii) union disputes or other employee relations issues; (xiv) Caterpillar's ability to successfully implement the Caterpillar Production System or other productivity initiatives; (xv) adverse changes in sourcing practices of our dealers or original equipment manufacturers; (xvi) compliance costs associated 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, particularly increases and decreases in the U.S. dollar against other currencies; (xx) failure of Caterpillar or Cat Financial to comply with financial covenants in their respective credit facilities; (xxi) increased funding obligations under our pension plans; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) imposition of operational restrictions or compliance requirements if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards or adoption of new accounting standards; (xxv) adverse effects of natural disasters; and (xxvi) other factors described in more detail under "Item 1A. Risk Factors" in Part I of our Form 10-K filed with the SEC on February 22, 2011 for the year ended December 31, 2010. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.