Caterpillar Inc. recently announced the formation of a new Beijing-based leasing entity and marked another milestone in the company's expansion of its global business model in China. The establishment of Caterpillar Financial Leasing Co. Ltd. follows licensing approval from the Chinese Ministry of Commerce and the related business license issued on April 23, 2004. The new operation is a wholly foreign-owned enterprise, with ownership shared by two Caterpillar subsidiaries — Caterpillar Financial Services Corp. with a 75 percent interest and Caterpillar Investment Co. Ltd. with a 25 percent interest.

Caterpillar CEO Jim Owens visited China recently with new group president Stu Levenick and vice president Rich Lavin.

“Our vision is to have the Caterpillar business model in place in China by the end of the decade,” said Owens, who expects sales in China to grow 35 percent to $1 billion in 2004. “The ability to provide leasing services complements Caterpillar's growing manufacturing presence in China and enables more comprehensive dealer support.”

Caterpillar Financial Leasing Co. will co-locate with CCI in Beijing, and the new operation will support Caterpillar dealers in China. Initial leasing through Caterpillar Financial Leasing will follow a period of due diligence and could occur as early as the fourth quarter 2004. The new office expands Caterpillar Financial's presence worldwide to include more than 40 locations in 35 countries.