Caterpillar will boost excavator production in China by 80 percent through the expansion of its manufacturing facility in Xuzhou, slated for completion in 2016. Caterpillar also plans to begin production of wheeled excavators at the Caterpillar Xuzhou Limited (CXL) facility beginning in early 2014, further expanding the range of products and services Caterpillar is offering to customers in China and other growth markets.
“As we have done around the world for more than 85 years, these investments in China are made with a long-term view toward the market and building out an industry-leading range of products and support services for our growing base of customers in China,” CEO Doug Oberhelman said. “Our continued investment in China also provides a base of operations in country to support our growing exports from the United States to China. In fact, in the last seven years as we have grown our operations in China, Caterpillar’s exports from the United States to China have more than doubled, supporting jobs in the United States and proving the benefits of trade for both countries.”
CXL has become Caterpillar’s flagship for manufacturing operations in China. Currently, Caterpillar has 17 facilities in China and another nine under construction.
Currently, Caterpillar produces wheeled excavators in Grenoble, France, and that will continue, the company says. Wheeled excavators produced in China will position Caterpillar to compete in China and other growth markets with this product.
“Caterpillar has been successfully producing excavators in China for nearly 20 years, and we are expanding our production capabilities as this market continues to grow,” said Gary Stampanato, Caterpillar vice president with responsibility for excavators. “Bringing production of wheeled excavators to China will give our customers more options and will position Caterpillar for continued success.”