US machinery giant Caterpillar yesterday announced it is moving
its Asia-Pacific operations headquarters from Tokyo to Beijing.
"The movement of our Asia-Pacific operation headquarter, a key
element of our business model, to Beijing will provide a sharper
focus for operational excellence for the company," said
Vice-President Rich Lavin, who has administrative responsibility
for manufacturing operations in Caterpillar's Asia-Pacific
division. He will also relocate from Japan to China.
Operational and sales success in China is a critical success
factor for the company's long-term growth and profitability, he
said.
Caterpillar's Asia-Pacific marketing division headquarters will
remain in Singapore.
"The movement of our Asia-Pacific operation headquarters to
China is a clear indication of China's strategic importance to
Caterpillar," said Stu Levenick, Caterpillar group president with
responsibility for Asia.
"It reflects our strong desire to expand our manufacturing base
and rapidly deploy our global business model to provide enhanced
support for customers in this critical market."
Now the company has 13 operation facilities in China, both joint
venture and wholly owned businesses.
This year the company's sales revenue in China is expected to
achieve 1 billion yuan (US$126.6 million), with a global sales
figure of 40 billion yuan (US$ 5.06 billion).
Earlier in September, China's National Development and Reform
Commission (NDRC) signed a letter of intent with Caterpillar, under
which both sides will join hands to promote the development of
China's emerging remanufacturing industry.
In the letter of intent, Caterpillar said it will provide
expertise to assist the NDRC and Chinese research institutions in
supporting the development of the remanufacturing industry in
China.
The two parties also agreed to form a Joint Working Group on
Remanufacturing Programmes to discuss the co-operation programme in
detail and to co-ordinate and promote further co-operation in
sustainable manufacturing and other areas.
The company is also in talks with Shanghai Diesel Engine Co to
buy its stake.
(China Daily November 22, 2006)