Caterpillar announces key components joint venture with China Liyuan

Caterpillar (China) Investment Co., Ltd. (Caterpillar China), a wholly-owned subsidiary of Caterpillar Inc., 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."

This new business will begin operations in Wuxi, Jiangsu Province, after receiving necessary government approvals. The Caterpillar / Liyuan joint venture, once approved by the applicable regulatory authority, will be the first key components joint venture for Caterpillar in China.