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Caterpillar Opens Logistics Facility in China

Caterpillar Inc. subsidiary Caterpillar Logistics Services, Inc. has opened a new parts distribution center in the Lingang Industrial Area in Shanghai.

The distribution center is currently providing parts for Caterpillar dealers in China, with plans to expand parts distribution from the location to dealers in Korea and Mongolia by the end of 2006.

The new 21, 000 m(2) (226, 042 ft(2)) distribution center will distribute parts to 34 dealer locations in China and will initially employ approximately 40 logistics professionals and carry in excess of 21, 000 part numbers for Caterpillar machine and engine products.

Caterpillar has a long history in China. The company sold its first products there in 1975 and opened an office in Beijing in 1978. Beijing is home to Caterpillar's marketing headquarters for China, and it is also the headquarters for Cat China Financial Leasing.

In the 1980s, Caterpillar launched technology transfer agreements with Chinese manufacturers who began building Caterpillar licensed products. Caterpillar's expansion in China accelerated in the early 1990s with the establishment of a more aggressive local production strategy. Today, Caterpillar operates 13 facilities -- both joint venture and wholly owned businesses -- which, together with its network of independent Caterpillar dealers, offer customers in China the best-in-class products, services and support that have made it a global leader.



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