China Daily reported that Caterpillar Inc, betting on China strong demand for manufacturing equipment will build new manufacturing facilities in Nantong with an investment of USD 100 million.
The world largest construction and mining machinery maker will build a proving ground and a large wheel loader manufacturing facility in the city in Jiangsu province. The proving ground is an expansion of Caterpillar research and development efforts in China and will help develop machinery for Caterpillar in China and the Asia-Pacific region.
The large wheel loader manufacturing facility will produce a new model for wheel loaders being developed at Caterpillar's Wuxi research and development center also in Jiangsu. Its wheel loader products will be sold in China and other growing markets such as India, Indonesia, the Middle East and Africa.
Mr Tana Utley Caterpillar vice-president and chief technology officer said "After this new proving ground is open, Caterpillar will be better positioned to compete and support its growing customer base in China and across Asia."
The site in Nantong is located close to several of Caterpillar existing manufacturing facilities in China and it is also near the majority of the company supply bases. The company currently has more than 8,000 employees across China at 16 manufacturing facilities, three research and development centers, six branch offices and three logistics and parts centers.
Mr Luis de Leon Caterpillar vice-president who is responsible for its mining products division said "The large wheel loaders we are going to make in the new plant will give customers a new option that has been designed to suit the needs and requirements for mining application in China and other emerging markets."
The proving ground is expected to be operational in the third quarter of 2012 and production at the wheel loader facility is scheduled to begin in the fourth quarter of next year.
Analysts have said China has quickly grown more important for US companies over the past few years.
Mr Zhao Ying, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences said China will continue to increase its investment on infrastructure and urbanization projects such as airports, subways, highways and low-income housing during the period under the 12th Five-Year Plan (2011-2015).
He said that "Thus, Caterpillar is willing to raise it investment in China as the nation will continue to drive its long-term demand for construction and mining equipment."
Mr Kevin Thieneman Caterpillar country manager for China said "This is another important step as Caterpillar continues to invest in its business in China to support our customers who continue to play a role in the transformation of the Chinese economy."
(Sourced from China Daily)
