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"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 US$1 billion yuan, with a global sales figure of US$40 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 11/22/2006 page10)

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