BEIJING, Aug. 24, 2011 /PRNewswire-Asia/ -- In support of the company's strategy to grow its business to a leadership position in China, Caterpillar Inc. (NYSE: CAT) announced today an expansion of the company's operations in China. Representatives from Caterpillar and the Xitong Technical Industrial Park Administrative Committee signed an Investment Agreement to build a state-of-the-art proving ground and a large wheel loader manufacturing facility in Tongzhou, Jiangsu Province.
The Asia Pacific Proving Ground (APPG) is an expansion of Caterpillar's research and development presence in Asia and will provide validation and product development services for Caterpillar machinery produced in China and the Asia/Pacific region. The large wheel loader manufacturing facility will produce a new model of wheel loader that is being developed at Caterpillar's Wuxi Research and Development (R&D) Center. The new wheel loader will support customer demand in China and other growth markets.
"The Asia Pacific Proving Ground will be critical for Caterpillar to develop and validate the right products for growth markets quickly and cost effectively," said Tana Utley, Caterpillar Vice President and Chief Technology Officer with responsibility for the Product Development and Global Technology Division. "After this new proving ground is open, Caterpillar will be better positioned to compete and support its growing customer base in China and across Asia," Utley added.
The site in Tongzhou is located in close proximity to several of Caterpillar's existing manufacturing facilities in China, as well as being near the majority of the company's existing supply base in China. Caterpillar currently has 16 manufacturing facilities, three research and development centers and three logistics and parts centers in China.
"The large wheel loaders we are going to make in Tongzhou will give customers a new option that has been designed to suit the needs and requirements for mining applications in China and growth markets," said Luis de Leon, Caterpillar Vice President with responsibility for the Mining Products Division. "By locating the wheel loader facility with the proving ground and near several other Caterpillar operations and our supply base, we will leverage Caterpillar's total business model to speed product development cycle times with unmatched engineering and supply chain support," de Leon added.
The Asia Pacific Proving Ground is expected to be operational in the third quarter of 2012. The large wheel loader facility is expected to start production in the fourth quarter of 2012.
"This is another important step as Caterpillar continues to invest in its business in China to support our customers who continue to play a role in the transformation of the Chinese economy," said Kevin Thieneman, Caterpillar country manager for China.
About Caterpillar:
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
Forward-Looking Statements
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.
