Caterpillar Expanding Production Capabilities at China Facility

Caterpillar announces it will be expanding its manufacturing facility in Xuzhou, China, to accommodate increased production of hydraulic excavators.

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Caterpillar Inc. 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%. Caterpillar has 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 Chairman and CEO Doug Oberhelman announced the expansion plans in Xuzhou at an event attended by senior Caterpillar leaders and representatives from the Xuzhou government. 

"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," Oberhelman says. "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," Oberhelman adds.

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.

"Caterpillar has been successfully producing excavators in China for nearly 20 years, and we are expanding our production capabilities as this market continues to grow," says Gary Stampanato, Caterpillar vice president with responsibility for excavators. "Bringing production of wheeled excavators to China will give our customers more options and will position Caterpillar for continued success," Stampanato adds.

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.