January 25, 2005
Caterpillar Inc. today announced the selection of the city of Qingdao in Shandong province as the location for a state-of-the-art Innovation Center for product and process development in China. This facility will provide a focal point for product development and will accelerate the introduction of the company's technology into its design and production processes in China. The planned facility is the latest step in a multi-year strategy introduced by the company in 2003 to expand its presence in China. The center will be managed and wholly owned by Caterpillar.
The center will support several China-based ventures in the future, including Shandong SEM Machinery Co. Ltd., a wheel loader manufacturer. Caterpillar previously signed definitive agreements to acquire a minority interest in SEM. The company also is engaged in preliminary discussions with other Chinese manufacturers, which could result in future investments.