U.S. Manufacturer Plans To Scoop Up More Profit with Chinese Wheel-Loader Deal
Caterpillar Inc. is carving out a larger share of Chinas healthy market for construction machinery by purchasing a minority interest in one of the countrys leading producers of front-end wheel loaders.
The contract gives Peoria, Ill.-based Cat the option to buy all remaining shares of Shandong SEM Machinery Co. Ltd., Qingzhou City, China, in 2007. "Our interests are long-term to acquire 100% ownership," says Cat spokesman Benjamin S. Cordani. The manufacturer made the announcement March 22. No more details were disclosed.