Caterpillar To Build New Small-Excavator Plant In Nanjing

Caterpillar Inc. has announced that it plans a facility to build small-sized –less than 20 ton — hydraulic excavators in Nanjing, Jiangsu province.

The announcement follows the signing of an investment agreement between Caterpillar and Jiangning Science Park Administrative Committee. The proposed facility will be located in the Jiangning Science Park district and will be wholly owned and operated by Caterpillar.

"This facility will add to Caterpillar's growing operations in China and provide the primary manufacturing source for Caterpillar small-sized hydraulic excavators for China," said Tom Bluth, Caterpillar vice president, who is based in Beijing and has responsibility for Asia Pacific manufacturing operations. "I would like to thank JSPAC for its support as we have worked to choose the best location for this new facility. This site offers Caterpillar a business friendly environment with excellent access to transportation facilities, established suppliers and a skilled workforce," he added.

The proposed facility will be located on 37 acres of land in JSP, and Caterpillar intends to begin construction of the 36,500 square meter manufacturing building in early 2009 subject to the appropriate government approvals.

The small-sized hydraulic excavator facility in Nanjing is the most recent example of Caterpillar's expanding manufacturing presence in China. Caterpillar core products manufactured in China include: hydraulic excavators, track-type tractors, motor graders and paving products, wheel loaders, large diesel engines used primarily for marine and power generation applications, and generator sets for use in China and the Asia Pacific region. Caterpillar also manufactures components at several facilities in China.

Currently Caterpillar has 16 operations in China — both joint venture and wholly owned businesses. It distributes its products in China through five independent dealers.

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