Caterpillar has completed its tender offer for ERA Mining Machinery, including its wholly-owned subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing.
ERA primarily designs, manufactures, sells and supports underground coal mining equipment in mainland China through Siwei, a stand-alone company known for its expertise in producing mining roof support equipment. According to Cat, the aquisition will allow it to support a growing base of Chinese coal mining customers.
China produces almost half of the world’s coal and the industry is forecasted to grow over the next several years.
The Siwei brand will continue to be used and be a part of Caterpillar Global Mining. Siwei currently has approximately 4,300 employees including engineering, manufacturing, sales, services, and other management functions. Siwei is located in the Henan province in central China, and is adjacent to the major underground coal-producing provinces.