Caterpillar to expand its R&D capacity in China

Article by Anita Panait, on January 4, 2012

Caterpillar will expand its R&D capacity and production facility in China to develop new wheel loaders for the Chinese mining industry. Caterpillar will set up Asia Pacific Proving Ground, which will provide validation and product development services for the company’s machinery produced in China and the Asia/Pacific region.

The new facilities will be the recent addition to the company’s manufacturing plants, three R&D centers and three logistics and parts centers in the Asian nation. The Asia Pacific Proving Ground will be located near the company’s manufacturing plants and supply base in China, speeding up product development cycle times. This move will allow the company to develop, introduce and market new products quicker, and will translate to larger market share.

The planned wheel loader manufacturing plant, meanwhile, will produce a new model, which is currently under development at the company’s Wuxi R&D Center. Caterpillar is relying on the high demand for large machinery and mining equipment in China to increase its market share in the country and other emerging Asian economies.

The company hopes to counter the effects of economic slowdown in the U.S., Japan and Europe by concentrating on growing markets like China.

Topics: china

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