Theodore's World: Cat to make diesel engines in China

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September 02, 2007

Cat to make diesel engines in China

Cat to make diesel engines in China
Peoria Journal Star


Caterpillar Inc. announced Tuesday it will begin making small and medium-sized diesel engines in China, including some from a new manufacturing facility it plans to build there.

The company said the engines will be made at facilities in Wuxi in the Jiangsu province, according to a memorandum of understanding reached with the Wuxi National High-Tech Industrial Development Zone.

It's part of a multi-year investment to develop and manufacture the engines, which will be sold under the Caterpillar and Perkins brands.

"This is about increasing our global capacity to meet customer demand," said spokesman Rusty Dunn. "It's a significant symbol of Caterpillar's commitment to China and the region."

The first of the planned operations will be the production of the Perkins 400 Series three- and four-cylinder engines from Perkins Shibaura Engines, a joint venture between Perkins - a Caterpillar subsidiary - and IHI Shibuara Machinery Corp. of China.

Next will come medium-sized engines for use in Caterpillar's core construction equipment manufactured in China, for power generation and marine applications.

Should the memorandum of understanding be finalized, pending Wuxi government and other regulatory approvals, the engines would be made at a new plant that would be completed in 2012 and bring Caterpillar's Wuxi employment to 400 to 600 people, Dunn said.

The engine facilities in Wuxi would be able to produce up to 100,000 engines annually that would be sold to customers - original equipment manufacturers - in China and the Pacific Rim region.

Dunn said the company would not disclose how much it is investing in the projects.

The company said it plans to focus on engines that will meet the emissions requirements in China and for other customers.

"As the global technology leader in the production of clean diesel engines, Caterpillar is committed to establishing a major investment to manufacture these world-class and clean diesel engines in China," said Doug Oberhelman, Caterpillar group president responsible for engines. "As Chinese customers face future emissions reduction requirements, Caterpillar will utilize its technology leadership to provide machines and engines that will meet their needs as well as enable sustainable development."
"For more than 30 years, Caterpillar customers in China have benefited from the unparalleled value that comes with owning and operating Caterpillar machines and engines," said Rich Lavin, Caterpillar vice president responsible for Asia Pacific manufacturing operations. "The plan to build these engines in China demonstrates our long-term commitment to this critically important market and to our customers."

Wild Thing's comment........

"Caterpillar’s commitment to China”?

How about their “commitment” to the workers in the United States?

"Cat to Make Diesel Engines in China"

Should read...Political prisoners to make diesel engines in China.

I grew up in Peoria, and this really ticks me off. So what is it gonig to be?? Make the engines in China, ship them to Mexico and have them tranported up the nifty NAFTA super highway, instead of making them in the US and supporting the homeland economy.

"This is about increasing our global capacity to meet customer demand,”

Bullshit. It’s about kowtowing to the commie scum so you can sell in their market,

Posted by Wild Thing at September 2, 2007 12:47 AM


How much you want to bet Caterpillar still charges the same price for their equipment even though they're using basically slave labor to make the engines?

Posted by: BobF at September 2, 2007 09:00 AM

For the past 20 or so years Caterpillar has been treating their long term employees like dirt by coercing them to take early retirement or through downsizing. A late uncle had to sue the company because he was approaching retirement and was facing a layoff at the very time they were hiring younger workers at lower pay schedules. As Bob has stated there will be no reduction in the equipment cost but likely an increase to cover shipping and handling expenses. As an ex-mechanic I have worked on CAT and John Deere industrial equipment, that Perkins engine is a sweetheart, that once it makes it past breakin will run forever. The true reason for the overseas move is there are too many restrictions domestically for them to expand and stay profitable, labor unions, environmental impact statements, socialist add ons like roads, water and other utility expenses unrelated to their business but demanded by the local authorities. Seattle lost Boeing, Olympia lost the Olympia Brewery over the same issues. If I were the leaders of Caterpillar I'd do the same thing although I don't believe in our businesses being offshore or owned by foreigners.

Posted by: Jack at September 2, 2007 12:15 PM

Bob they probably will, I realize business has to do things to keep making money. And I realize Cat is all over the world. But China??? Communist China my gosh, can't people draw the line someplace and just say no??GRRRRRRR

It's not like the employess in China will be making big bucks, not the assemply line people. Someone told me in China employess labor workers make like 41 cents a day or something.

Posted by: Wild Thing at September 2, 2007 04:37 PM

The times are changing. I don't like it. Jack has done an excellent analysis of the reasons. Greed, socialism, government regulations and interference. It is a shame to see big name corporations that have been a part of the rise of America to superpower status now going overseas. Small business overwhelmed by national chain big box stores selling foreign made goods.

To me it is all a drain on our soveriegnty, nationalism and unity. We are becoming a fractured nation as we globalize. Patriotism is being replaced by racial divide as immigration grows to epidemic proportions. I just wonder what America will be in 50 years.

Posted by: TomR at September 2, 2007 04:41 PM

Jack thanks for sharing about that, I am so sorry about your late Uncle, how horrible he had to go through all of that.

Posted by: Wild Thing at September 2, 2007 05:07 PM

Tom, that is a good way to say it, "fractured". It feels like my heart feels about all that is going on as well.

Posted by: Wild Thing at September 2, 2007 05:23 PM

My parents and grandparents are Peorians as well. My dad's father worked in Caterpillars tool and die department for over 50 years and some of their tools they are using today were designed by him.
I'm glad to know that we have another connection. Many of my family on both sides still live in Peoria.
I can't believe management would allow this to happen. Back when grandpa Bill worked there, this would have NEVER happened!

Posted by: Lynn at September 2, 2007 06:14 PM

Lynn, oh wow that is so neat. I love this Lynn!!! I was born and raised there.
Thank you so much for sharing about your Grandpa Bill. Your right it has changed a lot and it used to be a really fine company.

Posted by: Wild Thing at September 2, 2007 11:43 PM

Tom, I appreciate your comments and agree with you about this great country becoming "fractured". And if "We...The People" don't start getting our proverbial butts out of you-know-where and start reclaiming "Our" America, you won't want to see what She looks like in 50 years!!

Posted by: John at September 5, 2007 01:10 PM