Caterpillar to expand R&D, capacity in China

Shanghai, August 28 (Gasgoo.com) Caterpillar Inc. announced that it has planned to expand its China-based research and development operations. The company also planned to increase the capacity of Shandong Engineering Machinery (SEM).

Caterpillar has selected Wuxi city in Jiangsu province for multi-functional research and development center. The R&D facility, Caterpillar's third in China, will serve the company's ventures in China and the rest of the Asia Pacific, chief executive Jim Owens told reporters in Beijing. The Wuxi R&D center will focus on product and process development, validation, localization and technological training.

Caterpillar also announced multi-million dollar capacity expansion for SEM to meet growing demand and provide broader product portfolio to wheel loader customers. For this expansion, the company plans to buy additional land, and construction is expected to begin in 2009. Caterpillar acquired SEM outright in February this year.

The Wuxi plant began producing Caterpillar components in mid-2006 and a new small-diesel engine manufacturing facility at the Wuxi campus is slated to begin production late this year.

Caterpillar's sales growth in China is likely to continue at a "very high pace", although the increase in volume sales may moderate slightly as the Chinese market buys equipment with longer life cycles.

Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and a wide offering of related services.