06.12.2009

CAT expands in Asia

Caterpillar has acquired JCS Co, a South Korea-based manufacturer that specialises in producing undercarriage components for earthmoving and other off-road machinery from its owner Jinsung T.E.C. Co. Completion is due early 2010.

Jinsung supplies Caterpillar with rollers, idlers and metal-faced seals which it uses on a wide range of its machines. Cat says that the acquisition of JCS will provide it with proprietary technology to competitively produce highly engineered seals that will improve machine undercarriage reliability and durability.

David Bozeman, Cat vice president with responsibility for undercarriage production said: “In recent years, Caterpillar has made significant investments in its emerging market operations in Asia Pacific to support a growing base of customers in the region. This strategic acquisition will improve Caterpillar’s supply chain and component capacity in support of Caterpillar’s long-term machine capacity expansion plans in Asia.”
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The JCS seal manufacturing facility will be the company’s first factory in South Korea. Other manufacturing facilities in the region include: China, India, Indonesia and Australia.

Caterpillar has also opened a new multi-functional research and development (R&D) centre in Wuxi, Jiangsu province. The new centre will focus on engine and component product and process development, validation, localisation and technological training.

Among its many functions, the centre will have an engine test facility with performance and emissions development capability, an advanced materials laboratory, an electronics laboratory, a system and machine integration facility and validation capability.

Tana Utley, Caterpillar’s vice president and chief technology officer said: “As Caterpillar continues to increase its manufacturing presence in China to support our growing Chinese customer base, it is strategically important to have world-class product development and validation facilities in the region. This new R&D centre underscores our commitment to technical excellence in support of our Chinese manufacturing operations.”

The new centre is located near Cat’s component manufacturing facility in Wuxi that began production in June 2006, and the company’s Wuxi engine campus, which began production in 2009. It is also close to its medium wheel loader and motor grader manufacturing facility in Suzhou, which began production in October 2009.

This is the third Cat R&D facility in China, joining a Centre in Qingdao, Shandong Province for product and process development and a design centre in Xuzhou established in 2003, primarily focused on product improvement.

Caterpillar now employs more than 5,800 people in China across 11 manufacturing facilities and 10 business offices.