Promote Chinas Sustainability and Environmental Preservation Initiatives
The two companies will lead the industry remanufacturing diesel engines
On Dec. 12, 2009, Caterpillar (China) Investment Co., Ltd. (Caterpillar China), the subsidiary of the biggest machinery equipment manufacturer worldwide and the leading remanufacturing service provider Caterpillar Inc., and Guangxi Yuchai Machinery Co., Ltd. (Yuchai) have signed a joint-venture agreement to establish a company to provide remanufacturing services for Yuchai diesel engines and components and certain Caterpillar diesel engines and components. The new company will provide state-of-the-art remanufactured engines and components to its customers worldwide by leveraging remanufacturing technology through Caterpillars Remanufacturing and Sustainable Solutions Division (Cat Reman). Yuchai is the key diesel engine manufacturer and the largest producer of internal combustion engines in China. Its engine product line family includes mini, light, medium and heavy-duty engines utilized for the truck, commercial bus, generator, and passenger vehicle markets.
We are looking forward to achieving our new enterprise development target through the cooperation in remanufacturing, and are confident that we can provide value-added services, exceeding our customers needs while meeting the needs of our society and environment, said Yan Jie, Yuchai vice general manager responsible for remanufacturing.
We look forward to establishing the new company using our remanufacturing expertise in order to provide sustainable, cost-effective solutions for customers, and ultimately, growing this new market, said Steve Fisher, Caterpillar vice president responsible for remanufacturing. Along with the environmental benefits, the new company will create a platform for more green jobs and technology.
Remanufacturing is a highly sophisticated form of recycling, taking end-of-life components and transforming them into like-new products through salvage technology and state-of-the-art manufacturing practices. Caterpillar is a global leader in remanufacturing technology, recycling more than 100 million pounds of end-of-life iron annually, most of which are used for remanufactured engine, transmission and hydraulic components.
The remanufacturing business is one of the fastest growing industries, leveraging cutting edge technology to help customers remain both competitive and profitable. Remanufacturing is also an environmentally friendly repair option as the process reduces waste and minimizes the need for raw materials to make new parts.
The Caterpillar China-Yuchai joint venture, once approved by the applicable regulatory authority, will be the first remanufacturing joint venture for Caterpillar in China. Through the platform of Caterpillars global remanufacturing business and this newly formed joint venture, Caterpillar China and Yuchai will support the Chinese governments goal of achieving a sustainable economy based on industry-leading manufacturing expertise and environmentally friendly business practices.
Caterpillar has a long history in China. This is our second home, said Jiming Zhu, Caterpillar vice president responsible for the China Division. We are committed to helping China to develop sustainable solutions in every province.
About Caterpillar:
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of $51.324 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.
About Cat Reman
Caterpillars Remanufacturing and Sustainable Solutions Division is comprised of 18 facilities located in the United States, Mexico, Europe and Asia. Caterpillar is one of the largest remanufacturers today, remanufacturing more than 2 million components annually. It uses state-of-the-art remanufacturing technology to recycle used products, such as engines and transmissions, into like-new components.
YAN Jie
