Caterpillar Inc said yesterday it has completed acquiring the
remaining stake in a loading-machine maker in northern China, in
which it took a minority stake in 2005 to support its growing
customer base in the Chinese construction equipment industry.
The deal, with no financial terms disclosed, turned Shandong SEM
Machinery Co a wholly owned subsidiary of Caterpillar, the world's
biggest maker of bulldozers and excavators, the Illinois-based
company said.
Caterpillar bought a 40-percent stake of Shandong SEM in 2005.
The acquisition of the remainder has gained approval from the
Chinese government.
Shandong SEM, which produces machines used for scooping and
carrying earth or coal, has a total asset of 1.6 billion yuan
(US$219 million) and employs 2,200 staff, with more than 130 sales
agencies around the country, according to its website.
Apart from Shandong SEM's products, Caterpillar also
manufactures in China hydraulic excavators, motor graders, paving
products, large diesel engines used primarily for marine and power
generation applications, and generators.
These products are sold in China and other markets in the Asia
Pacific region.
(Shanghai Daily February 2, 2008)
