Cat establishes Chinese joint venture

09 Dec 2011

Caterpillar has announced a deal with Anqing CSSC Diesel Engine Co (ACD) of China to form a joint venture that will manufacture MaK medium speed marine engines for China and the Asia Pacific region.

The joint venture will be located in Anqing, Anhui, and will produce MaK M20 and M25 medium speed marine engines. It is expected to begin operations in mid 2012. Caterpillar Marine Trading Shanghai will be responsible for product distribution, application engineering, after sales services and the aftermarket parts business.

“This joint venture is the only JV of Caterpillar in the field of medium speed engines globally. The JV continues the Caterpillar strategy to develop partnerships with leading Chinese companies as we deploy our comprehensive business model in China,” said Richard Case, Caterpillar vice president with responsibility for the marine and petroleum power division. “The partnership will position Caterpillar to better compete and support its growing base of customers in China and across Asia.”

“CSSC has ranked second worldwide for five consecutive years in terms of the number of ships built. As a key supporting enterprise of CSSC, ACD achieved rapid growth during the 11th five-year plan period. ” said Tan Zuojun, general manager of CSSC. “To partner with Caterpillar in creating the JV and introduce MaK product lines is conducive to the next-step development of ACD, especially in tapping the marine engineering market. ”

“The JV will focus on improving production efficiency and management, lowering parts purchase cost, as well as expanding sales. ” said ACD chairman Zhang Haisen. “When growing to a certain scale in the future, the JV and Caterpillar will develop new models, and enhance the engineering capability of the JV, in an effort to support its sustainable development. ”

“The 12th Five-Year Plan emphasises the need to enhance the marine industry, particularly medium speed engines. This project directly supports that 12th five-year plan objective.” said Kevin Thieneman, Caterpillar country manager for China. “We are committed to increasing the range of our products and components in China.”

Caterpillar says that In nearly four decades, its Chinese operation has grown from a single office in Beijing to encompass 16 manufacturing facilities, nine new facilities under construction, four R&D centres, three logistics and parts centres, a financial leasing company and an independent support and dealer network, employing some 20,000 people in total.  

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