MEDIA RELEASE PR41773
Caterpillar Announces Key Components Joint Venture With China Liyuan
BEIJING, Oct. 18 /PRNewswire-AsiaNet/ --
Caterpillar Inc. (NYSE: CAT), through Caterpillar (China) Investment Co.,
Ltd. (Caterpillar China), and AVIC Liyuan Hydraulics Co., Ltd. have signed a
joint-venture agreement to establish a company to design and manufacture
medium- and heavy-duty hydraulic pumps and motors for the construction
equipment industry. The joint venture will provide components for use in Cat
products as well as third-party machinery and equipment. Hans Haefeli,
Caterpillar vice president with responsibility for Advanced Components &
Systems, and Jiming Zhu, Caterpillar vice president with responsibility for
China, took part in the signing ceremony.
"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 Haefeli. "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."
Both parties bring expertise, technology and broad distribution
capabilities to the joint venture. This new business will begin operations in
Wuxi, Jiangsu Province, after receiving necessary government approvals.
AVIC Liyuan Hydraulics Co., Ltd., a wholly owned subsidiary of AVIC Heavy
Machinery Co., Ltd. (600765.SSE), is the leading producer of hydraulic pumps
and motors 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 alignment is also significant in serving the
customer needs in China and reaching industry development."
The Caterpillar / Liyuan joint venture, once approved by the applicable
regulatory authority, will be the first key components joint venture for
Caterpillar in China. Through this, Caterpillar China and Liyuan will support
the Chinese government's goal of equipment machinery industry revitalization
by providing state-of-the-art technology and products.
"Over the last 30 years, Caterpillar has made significant investments in
China to support a growing base of customers in the region," Zhu said. "The
joint venture is a clear indication of Caterpillar's commitment to our
customers and to the China market."
"A good beginning is half way to success. I believe the alignment will
lead to further and broader cooperation going forward," said Ji.
About Caterpillar:
For more than 85 years, Caterpillar Inc. has been making progress
possible and driving positive and sustainable change on every continent. With
2009 sales and revenues of $32.396 billion, Caterpillar is the world's
leading manufacturer of construction and mining equipment, diesel and natural
gas engines and industrial gas turbines. The company also is a leading
services provider through Caterpillar Financial Services, Caterpillar
Remanufacturing Services, Caterpillar Logistics Services and Progress Rail
About AVIC Liyuan Hydraulic:
AVIC Liyuan Hydraulic Co., Ltd., a wholly owned subsidiary of AVIC Heavy
Machinery Co., Ltd. (600765.SSE), is a professional enterprise to research
and develop the military and civilian hi-pressure piston pump/motor. It is an
authorized National High and New Tech enterprise for the national basic
components industry.
Liyuan Hydraulic has successfully developed the products of 40 series 700
items to be widely used for the national aviation and spaceflight,
engineering, architecture, mining, shipping, railway engine, metallurgy and
agriculture machinery. It has a large sales and service network in the
domestic market. The products are exported to North America, South America,
Europe, Asia and beyond. For more information, please visit
Forward-Looking Statements
Certain statements in this press release relate to future events and
expectations and, as such, constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are subject to known and unknown factors that may cause actual
results of Caterpillar Inc. to be different from those expressed or implied
in the forward-looking statements. Words such as "believe," "estimate," "will
be," "will," "would," "expect," "anticipate," "plan," "project," "intend,"
"could," "should" or other similar words or expressions often identify
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements, including, without
limitation, statements regarding our outlook, projections, forecasts or trend
descriptions. These statements do not guarantee future performance, and
Caterpillar does not undertake to update its forward-looking statements.
It is important to note that actual results of the company may differ
materially from those described or implied in such forward-looking statements
based on a number of factors, including, but not limited to: (i) economic
volatility in the global economy generally and in capital and credit markets;
(ii) Caterpillar's ability to generate cash from operations, secure external
funding for operations and manage liquidity needs; (iii) adverse changes in
the economic conditions of the industries or markets Caterpillar serves; (iv)
government regulations or policies, including those affecting interest rates,
liquidity, access to capital and government spending on infrastructure
development; (v) commodity price increases and/or limited availability of raw
materials and component products, including steel; (vi) compliance costs
associated with environmental laws and regulations; (vii) Caterpillar's and
Cat Financial's ability to maintain their respective credit ratings, material
increases in either company's cost of borrowing or an inability of either
company to access capital markets; (viii) financial condition and credit
worthiness of Cat Financial's customers; (ix) material adverse changes in our
customers' access to liquidity and capital; (x) market acceptance of
Caterpillar's products and services; (xi) effects of changes in the
competitive environment, which may include decreased market share, lack of
acceptance of price increases, and/or negative changes to our geographic and
product mix of sales; (xii) Caterpillar's ability to successfully implement
Caterpillar Production System or other productivity initiatives; (xiii)
international trade and investment policies, such as import quotas, capital
controls or tariffs; (xiv) failure of Caterpillar or Cat Financial to comply
with financial covenants in their respective credit facilities; (xv) adverse
changes in sourcing practices for our dealers or original equipment
manufacturers; (xvi) additional tax expense or exposure; (xvii) political and
economic risks associated with our global operations, including changes in
laws, regulations or government policies, currency restrictions, restrictions
on repatriation of earnings, burdensome tariffs or quotas, national and
international conflict, including terrorist acts and political and economic
instability or civil unrest in the countries in which Caterpillar operates;
(xviii) currency fluctuations, particularly increases and decreases in the
U.S. dollar against other currencies; (xix) increased payment obligations
under our pension plans; (xx) inability to successfully integrate and realize
expected benefits from acquisitions; (xxi) significant legal proceedings,
claims, lawsuits or investigations; (xxii) imposition of significant costs or
restrictions due to the enactment and implementation of health care reform
legislation and proposed financial regulation legislation; (xxiii) changes in
accounting standards or adoption of new accounting standards; (xxiv) adverse
effects of natural disasters; and (xxv) other factors described in more
detail under "Item 1A. Risk Factors" in Part I of our Form 10-K filed with
the SEC on February 19, 2010 for the year ended December 31, 2009 and in Part
II of our Form 10-Q filed with the SEC on May 3, 2010 for the quarter ended
March 31, 2010. These filings are available on our website at
SOURCE: Caterpillar Inc.
CONTACT: China, Crystal Sui of Caterpillar China, +86-10-5921-0581,
Sui_Crystal@cat.com, or North America, Bridget M. Young, Corporate Public
Affairs of Caterpillar, +1-309-675-8463, young_bridget_m@cat.com
Translations:
NEWS 
