Caterpillar Announces Excavator Capacity Expansion in China

March 21, 2012
Caterpillar Inc. this week announces a new expansion project for the company’s manufacturing facility in Xuzhou, China. Once completed in 2016, it will increase hydraulic excavator production at Caterpillar Xuzhou Limited (CXL) by an additional 80 percent. Caterpillar also announced plans to begin production of wheeled excavators at CXL beginning in early 2014, further expanding the range of products and services Caterpillar is offering to customers in China and other growth markets.

Caterpillar Inc. this week announces a new expansion project for the company’s manufacturing facility in Xuzhou, China. Once completed in 2016, it will increase hydraulic excavator production at Caterpillar Xuzhou Limited (CXL) by an additional 80 percent. Caterpillar also announced plans to begin production of wheeled excavators at CXL 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,” said Doug Oberhelman, Caterpillar chairman and CEO. “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 with leading product quality, safety and employee engagement. In recent years, the company and its independent dealers have made significant investments to expand the range of products and components produced in China, increase and improve customer support services, and expand and enhance dealer coverage in every province. Currently, Caterpillar has 17 facilities in China and another nine under construction.

The plan to manufacture wheeled excavators in China fits within Caterpillar’s strategy for developing the widest and deepest product offering and support for the market. Currently, Caterpillar produces wheeled excavators in Grenoble, France. Production in Grenoble will continue, while the wheeled excavators produced in China will position Caterpillar to compete in China and other growth markets with this product.

The additional hydraulic excavator capacity is subject to certain governmental agreements and approvals. The increases are expected to be in place in 2016, while production of the first wheeled excavator in Xuzhou is expected in the first quarter of 2014.

Peoria, Ill.-based Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.