Caterpillar and AVIC Liyuan Hydralics enter into joint-venture
19 October 2010
Caterpillar Investment Co., Ltd. and AVIC Liyuan Hydralics Co., Ltd, the leading producer of hydraulic pumps and motors in China, have signed a joint venture agreement to establish a company, which will design and manufacture medium and heavy-duty hydraulic pumps and motors for the construction industry.
The new company will make produce for use in Caterpillar products as well as third-party machinery and will begin operations in Wuxi, Jiangsu Province, after achieving the necessary government approvals.
Hans Haefeli, Caterpillar’s vice president with responsibility for Advanced Components & Systems, and Jiming Zhu, Caterpillar’s vice president, overseeing China, took part in the signing ceremony.
Caterpillar has been looking to get a better foothold in China. Haefeli said, "We look forward to expanding our components presence in China through this venture and leveraging our expertise to become a leading supplier for Caterpillar and OEM customers in this growing market. This strategic alignment will also enhance Caterpillar’s supply base and key component capacity in support of Caterpillar’s machine capacity expansion plans in China."
Jiming Zhu said, "Over the last 30 years, Caterpillar has made significant investments in China to support a growing base of customers in the region. The joint venture is a clear indication of Caterpillar’s commitment to our customers and to the Chinese market."
AVIC Liyuan Hydralics products are currently exported to North America, South America, Europe and Asia. Mr. Ji Suchun, general manager of AVIC Liyuan Hydralics said, "We are looking forward to achieving our new enterprise development target through the cooperation, which will enable us to become an OEM and piston pump supplier to Caterpillar, facilitating Caterpillar’s effort to localise production of key hydraulic components. This alignment is also significant in serving the customer needs in China and reaching industry development."