On October 18, 2010, Caterpillar (China) Investment Co., Ltd. and China Aviation Liyuan Hydraulic Co., Ltd. signed a "Joint Venture Agreement" to establish a joint venture company. The company is mainly engaged in the design and production of medium-load pumps, heavy-duty pumps and motors for the construction industry. The joint venture company will provide Caterpillar and third-party machinery and equipment suppliers with matching components. This strategic alliance will consolidate Caterpillar's supply system, which will help expand the parts and components business in China, increase the production capacity of core components, and pave the way for Caterpillar to expand its machinery capacity in China.
It is understood that this company will become Caterpillar's first key component joint venture company established in China. The project will settle in Wuxi City. The partners will bring the joint venture company's expertise, experience and huge sales channels, and will provide high-quality technology. The products and products support the Chinese government's goal of realizing the revival of the equipment and machinery industry.
On September 29, 2010, Caterpillar announced plans to expand its production line in China to further meet the growing demand in the Chinese market. The new factory in Wujiang will focus on producing small hydraulic excavators up to 8 tons. The plant is part of Caterpillar's Construction Engineering Products Division, which operates in the United States, Japan, Brazil, and the United Kingdom. The construction of the Wujiang plant will be carried out according to the approval of the Jiangsu Provincial Government. It is planned to start construction at the end of 2010, be completed in 2012 and put into production and operation. At present, Caterpillar provides mini-excavators for Chinese users mainly from the Xuzhou plant and the Sagami plant in Japan. After the Wujiang plant is put into production, the Xuzhou plant and the Sagami plant will have more production capacity for other Caterpillar products. The Wujiang plant is part of Caterpillar's long-term investment plan to increase production capacity in China. When put into production, it will consolidate Caterpillar's leading position in the industry's production capacity among China's construction equipment manufacturers.
Shortly afterwards, Caterpillar announced that it will launch a new Excavator 336E to replace the previous generation of the 336D, Caterpillar's first device to meet US EPA EPA Tier-4 emissions requirements. The new 336E tracked excavator is equipped with Cat C9 series engines, with advanced electronic control, precise fuel supply, and an optimized air intake management system, which increases power by 18% over the previous generation. The new 336E crawler excavator has further strengthened the boom, stick, and swivel device, and the first team has improved the overall machine operating capability. The cab is equipped with a new large-screen display controller, adjustable joystick controls, new air conditioning, and a radio with MP3 playback. The Caterpillar 336E crawler excavator will be the first to launch in North America in January next year.
In July 2010, Caterpillar, Navita International and China Jianghuai Automobile have reached a joint venture plan with a total value of nearly 4 billion yuan (US$586 million). It will include two cooperative projects including the construction of trucks and engines. The diesel engine project, which is funded by JAC and Navita International Group plans to invest 50% each. The planned joint venture heavy truck company will be established at JAC's manufacturing base in Hefei with a production capacity of 40,000 vehicles. If it goes well, the agreement also means that Caterpillar and Navita International will be among the 150 billion yuan heavy truck market in China, competing with Daimler and other European companies.
Caterpillar is a world-class giant in the construction machinery industry. Today's large-scale multi-line operations are enough to prove its confidence in this year's construction machinery industry, and want to take the opportunity to expand the market share of enterprises, strengthen their strength, and strive for more and better. Resources. This series of strategic initiatives in China clearly demonstrates that Caterpillar will establish a sustainable long-term development goal in China.
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