Caterpillar Announces Plans to Build Small-Sized Hydraulic Excavators in China

Logistics Insight Asia - Industry News, 15/7/2008

Caterpillar Inc. has announced plans to build world-class small-sized (less than 20 tons) hydraulic excavators in Nanjing, Jiangsu province, China. This facility fits into Caterpillar's China and emerging markets, strategy, and it will be a key element of the company's worldwide excavator manufacturing footprint. The announcement follows the signing of an investment agreement between Caterpillar and Jiangning Science Park Administrative Committee (JSPAC). The proposed facility will be located in the Jiangning Science Park district (JSP) and wholly owned and operated by Caterpillar.

The proposed facility will be located on 37 acres (150,000 square meters) of land in the JSP, and Caterpillar intends to begin construction of the 365,000 square foot manufacturing building in early 2009 pending appropriate governmental approvals.

The small-sized hydraulic excavator facility in Nanjing is the most recent example of Caterpillar's expanding manufacturing presence in China. Caterpillar core products manufactured in China include: hydraulic excavators, track-type tractors, motor graders and paving products, wheel loaders, large diesel engines used primarily for marine and power generation applications, and generator sets for use in China and the Asia Pacific region. Caterpillar also manufactures components at several facilities in China.

Today, Caterpillar has 16 operations - both joint venture and wholly owned businesses - in China. Caterpillar has developed a strong supply base, which fits well with its operations and investment strategy. Team Caterpillar is also growing rapidly in China. By the end of this year, Caterpillar will employ over 7,000 people.

Caterpillar, www.cat.com.