Caterpillar to build manufacturing facility in China

Caterpillar Inc. plans to expand its manufacturing presence in China to further position the company to meet growing customer demand in China. The company will produce mini hydraulic excavator models in the under eight ton range at the new facility in Wujiang.

Work on the new facility in Wujiang is expected to begin in late 2010 pending approvals from governmental officials in Jiangsu province. The company expects to begin producing mini excavators in Wujiang in 2012. Currently Caterpillar supplies Chinese customers with mini excavators produced at Caterpillar’s facility in Xuzhou, China and with machines produced in Sagami, Japan. Once the facility in Wujiang is producing machines, the operations in Xuzhou and Sagami will then be able to increase capacity for other Caterpillar products.

The new facility in Wujiang is part of Caterpillar’s long-term capacity investment plan for China, which when completed, will position Caterpillar for industry leading equipment manufacturing capacity among construction equipment manufacturers in China.