Caterpillar Inc. has decided to build a new wheel-loader manufacturing facility in the Suzhou Industrial Park in China's Jiangsu province. The new plant will be wholly owned and operated by Caterpillar.

"This facility will add to Caterpillar's growing operations in China and provide the primary manufacturing source for Caterpillar wheel loaders in the Asia Theater," says Rich Lavin, vice president of operations for Caterpillar's Asia Pacific Division. "This site offers Caterpillar a business-friendly environment with excellent access to port and ground transportation facilities, established suppliers and great people."

The 350,000-square-foot factory will be located on 57 acres of land in the Suzhou Industrial Park. Caterpillar plans to begin construction of the building in early 2007 pending appropriate governmental approvals.

The wheel loader facility in Suzhou is the most recent example of Caterpillar's expanding manufacturing presence in China. Caterpillar products manufactured in China include hydraulic excavators, track-type tractors, motor graders and paving products, large diesel engines used primarily for marine and power generation applications, and generator sets for use in China and the Asia Pacific region.

Caterpillar also manufactures components at several facilities in China. In addition, Caterpillar holds a minority stake in Shandong SEM Machinery Co., one of China's leading wheel loader manufacturers.

In total, Caterpillar operates 13 China-based facilities-both joint venture and wholly owned businesses.

Caterpillar began doing business in China, eventually opening 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.