Equipment Type

Caterpillar JV to Make Hydraulic Components in China

Caterpillar will establish a company in China to design and manufacture medium- and heavy-duty hydrualic pumps and motors for construction equipment.

October 18, 2010

Caterpillar will establish a company in China to design and manufacture medium- and heavy-duty hydrualic pumps and motors for construction equipment.

Caterpillar (China) Investment Co., Ltd. (Caterpillar China), a wholly-owned subsidiary of Caterpillar signed a joint-venture agreement with AVIC Liyuan Hydraulics Co., Ltd. that will provide components for use in Cat products as well as third-party machinery and equipment.

“We look forward to expanding our components presence in China through this venture and leveraging our expertise to become a leading supplier for Caterpillar and OEM customers in this growing market,” said Hans Haefeli, Caterpillar vice president with responsibility for Advanced Components & Systems. “This strategic alignment will also enhance Caterpillar’s supply base and key component capacity in support of Caterpillar’s machine capacity expansion plans in China.”

“We are looking forward to achieving our new enterprise development target through the cooperation, which will enable us to become an OEM and piston pump/motor supplier to Caterpillar, facilitating Caterpillar’s effort to localize production of key hydraulic components,” said Mr. Ji Suchun, general manager of Liyuan.

This new business will begin operations in Wuxi, Jiangsu Province, after receiving necessary government approvals. The JV will be the first key components joint venture for Caterpillar in China, the company says.

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