According to chairman and CEO Jim Owen, Caterpillar plans to add to its China-based research and development operations to increase the technical support for its products in China and the rest of the Asia Pacific Region.
This additional R&D effort is part of Caterpillar's strategy to support the expanded manufacturing footprint being implemented in China and the growing market demand in emerging markets. Owens also said the company will increase the capacity of Shandong Engineering Machinery.
For the last thirty years, Caterpillar has been playing an increasing role in China from equipment import to deploying its global business model including manufacturing, product design, distribution, research and development, sourcing and product support. Caterpillar's global business model is focused on creating value for its customers.
On a recent visit to China Owens stated that Caterpillar's operations have benefited from China's remarkable economic growth and they were proud to be a part of a historical transformation. He added that China is also Caterpillar's home and they looked forward to making an even bigger contribution to the economy and people of China.
Caterpillar has selected the city of Wuxi in Jiangsu province as the location for a multi-functional research and development center serving Caterpillar's ventures in China and the rest of the Asia Pacific Region. The Wuxi R&D center will focus on product and process development, validation, localization and technological training. Among its many functions, the new center will have an engine test facility with performance and emissions development capability, an advanced materials laboratory, an electronics laboratory, a system and machine integration facility and validation capability. The center will be built in multiple phases with the first phase to be complete at the end of 2009.
The center is strategically located near Caterpillar's component manufacturing facility in Wuxi that began production in June 2006 and the Wuxi engine campus with its first phase of production scheduled toward the end of 2008. It is also near the medium wheel loaders and motor graders manufacturing facility in Suzhou and the small-sized hydraulic excavator manufacturing facility in Nanjing. The Suzhou facility is currently under construction, and construction for the Nanjing facility will begin in 2009. Both facilities are expected to be Leadership in Energy and Environmental and Design certifiable once operational. The LEED Green Building Rating System is a voluntary, consensus-based national rating system for developing high-performance, sustainable buildings.
In 2005, Caterpillar established an R&D Center in Qingdao, Shandong Province for product and process development in China. Caterpillar also has a design center in Xuzhou established in 2003, primarily focused on product improvement. Both centers are also expected to expand to support growing manufacturing operations. This commitment to technical excellence in China will provide a focal point for product development and will accelerate the introduction of Caterpillar technology into its design and production processes in the region.
