Caterpillar Inc. on Nov. 30 inked a contract to acquire JCS Co. Ltd., a South Korea-based manufacturer that makes seals for machines that move on crawler tracks, such as bulldozers and hydraulic excavators. The company is a subsidiary of Jinsung T.E.C. Co. Ltd., which already supplies rollers, idlers and metal-faced seals to Peoria, Ill.-based Cat. JCS would provide Cat with “proprietary technology” to build “highly engineered” seals and would be its first factory in South Korea, Cat says. The deal, the terms of which were not disclosed, is expected to close in early 2010.
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.