Caterpillar To Build Wheel Loader Plant in China

Posted on July 24, 2006

Caterpillar Inc. has signed an investment agreement with the Suzhou Industrial Park Administrative Committee (SIPAC) to build a new wheel loader manufacturing facility in the Suzhou Industrial Park in China's Jiangsu province. The new production facility will be wholly owned and operated by Caterpillar.

"This facility will provide the primary manufacturing source for Caterpillar wheel loaders in the Asia Theater," said Rich Lavin, vice president of operations for Caterpillar's Asia Pacific Division.

Cat said it intends to begin construction of the 350,000 sq.-ft. building in early 2007 pending appropriate governmental approvals.

The announcement continues Cat’s expansion in China. The company said “core’ products manufactured in China include: hydraulic excavators, track-type tractors, motor graders and paving products, 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. In addition, Caterpillar holds a minority stake in Shandong SEM Machinery Co., Ltd. (SEM), one of China's leading wheel loader manufacturers. In total, Caterpillar operates 13 China-based facilities -- both joint venture and wholly owned.

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