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Cat Changes JV Name, Continues Cat-SEM Strategy in China

Posted on April 11, 2014

The former Shandong Shangong Engineering Mechanics Co., Ltd. in China is now Caterpillar (Qingzhou) Co., Ltd. following a recent “renaming” ceremony in China.

Caterpillar will produce Cat-branded loaders (the model 950GC at present) and SEM-branded products at Qingzhou plant, as Cat continues to carry out a dual brand (Caterpillar and SEM) strategy in China, to provide differentiated products to the Chinese users, the company said.

At the same time, Caterpillar (Qingzhou) Co., Ltd. opened a plant to build SEM-branded crawler dozers, which formally began production in March, 2014, with 160 hp dozers.  In addition, early versions of a 220 hp dozer have also been produced at the Qingzhou plant.

Ed Rapp, Caterpillar group president, said that driven by the infrastructure-oriented demand, Cat foresees development opportunities in China and the rest of Asian region. The renaming, he said, is one of the company’s commitments to long-term development in this region.

Further, Rapp said, a differentiated value proposition of the two brands - Caterpillar and SEM - will help to render better, broader and more comprehensive support for customers.

Since the Shangong joint venture was established in 2005 and taken over in 2008, Caterpillar has invested significant resources to develop entirely new SEM-branded wheel loaders with better quality and higher reliability. At the same time, production was extended to SEM-branded graders, rollers and the crawler dozers.

Caterpillar’s Vice President Karl Weiss, said Launch of Cat 950GC wheel loader shows that the Qingzhou plant has been integrated into Caterpillar and that the manufacturing level and quality specifications of Qingzhou plant have reached Caterpillar’s global standards.