Press release from PR Newswire
Caterpillar Announces Excavator Capacity Expansion, Positioning the Company to Support Long-Term Growth in China; Caterpillar Also Plans to Produce Wheeled Excavators in China
Wednesday, March 21, 2012
XUZHOU, Jiangsu Province, People's Republic of China (PRC), March 21, 2012 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced today a new expansion project for the company's manufacturing facility in Xuzhou, China. Once completed in 2016, it will increase hydraulic excavator production at Caterpillar Xuzhou Limited (CXL) by an additional 80 percent. Caterpillar also announced plans today to begin production of wheeled excavators at CXL beginning in early 2014, further expanding the range of products and services Caterpillar is offering to customers in China and other growth markets.
Caterpillar Chairman and CEO Doug Oberhelman announced the expansion plans in Xuzhou at an event attended by senior Caterpillar leaders and representatives from the Xuzhou government.
"As we have done around the world for more than 85 years, these investments in China are made with a long-term view toward the market and building out an industry-leading range of products and support services for our growing base of customers in China," Oberhelman said. "Our continued investment in China also provides a base of operations in country to support our growing exports from the United States to China. In fact, in the last seven years as we have grown our operations in China, Caterpillar's exports from the United States to China have more than doubled, supporting jobs in the United States and proving the benefits of trade for both countries," Oberhelman added.
CXL has become Caterpillar's flagship for manufacturing operations in China with leading product quality, safety and employee engagement. In recent years, the company and its independent dealers have made significant investments to expand the range of products and components produced in China, increase and improve customer support services, and expand and enhance dealer coverage in every province. Currently, Caterpillar has 17 facilities in China and another nine under construction.
The plan to manufacture wheeled excavators in China fits within Caterpillar's strategy for developing the widest and deepest product offering and support for the market. Currently, Caterpillar produces wheeled excavators in Grenoble, France. Production in Grenoble will continue, while the wheeled excavators produced in China will position Caterpillar to compete in China and other growth markets with this product.
"Caterpillar has been successfully producing excavators in China for nearly 20 years, and we are expanding our production capabilities as this market continues to grow," said Gary Stampanato, Caterpillar vice president with responsibility for excavators. "Bringing production of wheeled excavators to China will give our customers more options and will position Caterpillar for continued success," Stampanato added.
The additional hydraulic excavator capacity is subject to certain governmental agreements and approvals. The increases are expected to be in place in 2016, while production of the first wheeled excavator in Xuzhou is expected in the first quarter of 2014.
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2011 sales and revenues of $60.138 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 StatementsCertain 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. 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 we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those described or implied in our 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 we serve; (ii) government monetary or fiscal policies and infrastructure spending ; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) our and our customers', dealers' and suppliers' ability to access and manage liquidity; (v) political and economic risks and instability, including national or international conflicts and civil unrest; (vi) our and Cat Financial's ability to: maintain credit ratings, avoid material increases in borrowing costs, and access capital markets; (vii) the 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; (x) challenges related to Tier 4 emissions compliance; (xi) market acceptance of our products and services; (xii) changes in the competitive environment, including market share, pricing and geographic and product mix of sales; (xiii) successful implementation of capacity expansion projects, cost reduction initiatives and efficiency or productivity initiatives, including the Caterpillar Production System; (xiv) sourcing practices of our dealers or original equipment manufacturers; (xv) compliance with environmental laws and regulations; (xvi) alleged or actual violations of trade or anti-corruption laws and regulations; (xvii) additional tax expense or exposure; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial covenants; (xx) increased pension plan funding obligations; (xxi) union disputes or other employee relations issues; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) compliance requirements imposed if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards; (xxv) failure or breach of IT security; (xxvi) adverse effects of natural disasters; and (xxvii) other factors described in more detail under "Item 1A. Risk Factors" in our Form 10-K filed with the SEC on February 21, 2012 for the year ended December 31, 2011. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.
For further information: North America: Jim Dugan, Corporate Public Affairs, +1-309-494-4100 office, +1-309-360-7311 mobile, Dugan_jim@cat.com, or China: Xiao Yan, (8610)5921-0197 office, Xiao_Yan@Cat.com, both of Caterpillar