Chinese School - Caterpillar to move regional base to Beijing

BIZCHINA / Overseas Investment

Caterpillar to move regional base to Beijing

(China Daily)
Updated: 2006-11-22 08:39

US machinery giant Caterpillar yesterday announced it is moving its
Asia-Pacific operations headquarters from Tokyo to Beijing.

"The movement of our Asia-Pacific operation headquarter, a key element of
our business model, to Beijing will provide a sharper focus for
operational excellence for the company," said Vice-President Rich Lavin,
who has administrative responsibility for manufacturing operations in
Caterpillar's Asia-Pacific division. He will also relocate from Japan to
China.

Operational and sales success in China is a critical success factor for
the company's long-term growth and profitability, he said.

Caterpillar's Asia-Pacific marketing division headquarters will remain in
Singapore.

"The movement of our Asia-Pacific operation headquarters to China is a
clear indication of China's strategic importance to Caterpillar," said
Stu Levenick, Caterpillar group president with responsibility for Asia.

"It reflects our strong desire to expand our manufacturing base and
rapidly deploy our global business model to provide enhanced support for
customers in this critical market."

Now the company has 13 operation facilities in China, both joint venture
and wholly owned businesses.

This year the company's sales revenue in China is expected to achieve
US$1 billion yuan, with a global sales figure of US$40 billion.

Earlier in September, China's National Development and Reform Commission
(NDRC) signed a letter of intent with Caterpillar, under which both sides
will join hands to promote the development of China's emerging
remanufacturing industry.

In the letter of intent, Caterpillar said it will provide expertise to
assist the NDRC and Chinese research institutions in supporting the
development of the remanufacturing industry in China.

The two parties also agreed to form a Joint Working Group on
Remanufacturing Programmes to discuss the co-operation programme in
detail and to co-ordinate and promote further co-operation in sustainable
manufacturing and other areas.

The company is also in talks with Shanghai Diesel Engine Co to buy its
stake.

(China Daily 11/22/2006 page10)

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