Caterpillar Inc. last week completed its tender offer for ERA Mining Machinery Limited, including its wholly owned subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing Co.
ERA primarily designs, manufactures, sells and supports underground coal mining equipment in mainland China through Siwei, a stand-alone company known for its deep expertise in producing mining roof support equipment and its focus on strong customer relationships.
“Siwei is an outstanding company with excellent people and great products in an industry that will continue to grow as the world population increases and mass urbanization drives a greater need for commodities,” said Steve Wunning, Caterpillar group president with responsibility for Resource Industries. “This is a strategic decision by Caterpillar to enhance and broaden our offerings for customers in China and in the long-run will provide Siwei a strong platform for growth beyond China.”
This acquisition is aligned with Caterpillar’s strategic imperative to expand its leadership in the Chinese coal mining equipment industry. The Siwei brand will continue to be used and be a part of Caterpillar Global Mining.
Caterpillar has grown from a single sales office in Beijing to a broad footprint across the country — including 18 locations for manufacturing, four research and development facilities, three logistics and parts centers and other offices. The company currently has nine new facilities under construction in China.
Peoria, Ill.-based Caterpillar Inc. is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.