Press release from PR Newswire
Caterpillar to Expand Shandong Engineering Machinery (SEM) Product Line and Increase Capacity for SEM Wheel Loaders
Thursday, March 22, 2012
Caterpillar to Expand Shandong Engineering Machinery (SEM) Product Line and Increase Capacity for SEM Wheel Loaders23:30 EDT Thursday, March 22, 2012QINGZHOU, China, March 22, 2012 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) announced today investments in new products and additional capacity for Shandong Engineering Machinery (SEM), its wholly-owned, Chinese construction equipment company. These investments will transform SEM from a leading Chinese wheel loader manufacturer to a leading provider of a wide range of construction equipment. SEM currently produces wheel loaders, motor graders and paving products. With today's announcement, the company is adding a line of SEM-branded track-type tractors and will again add capacity for wheel loaders. Caterpillar Chairman and CEO Doug Oberhelman announced the expansion plans in Qingzhou at an event attended by senior Caterpillar leaders and representatives from the Qingzhou government. "China has the largest construction equipment market in the world, and based on China's multi-year plan for continued infrastructure development and economic growth, we are continuing to invest in our operations in China to support our customers and to grow our business," Oberhelman said. "Because of the unique nature and size of the Chinese market, our investments include our Cat-branded products and with this announcement, additional growth and expansion for our SEM brand." Since purchasing SEM in 2008, Caterpillar has invested significant resources to develop new wheel loader models with improved product quality and reliability while increasing production capacity. With this latest announcement, Caterpillar will have nearly tripled SEM wheel loader capacity by 2014 when all wheel loader expansion plans are expected to be completed. In addition, the company plans to build a new facility at the SEM manufacturing campus to begin production of SEM-branded track-type tractors for the Chinese market and for export to some growth markets. Initial production of SEM-branded track-type tractors is expected in late 2012, with production ramping up through 2013 and 2014."We recognize that Chinese customers have different needs across the span of the construction equipment industry and because of that, we will continue to expand our SEM product offerings," said Paul Blackburn, SEM general manager. "The combination of our Cat-branded products and services and the continued growth of our differentiated SEM product line uniquely positions Caterpillar to deliver on its long-term strategy for success in China, which is based on serving our Chinese customers better than our competitors," said Kevin Thieneman, Caterpillar country manager for China, India and ASEAN. The expansion plans at SEM are subject to certain governmental agreements and approvals.About Caterpillar: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, mobile, +1-309-360-7311, or China, Xiao Yan, (8610)5921-0197, Xiao_Yan@Cat.com, both of Caterpillar Inc.