Business: Caterpillar announces plans to build small-sized hydraulic excavators in China

Caterpillar continues to make major capital investments in China

Beijing (ANTARA News/PRNewswire-AsiaNet) - Caterpillar Inc. (NYSE: CAT) announced today plans to build world-class small-sized (less than 20 tons) hydraulic excavators in Nanjing, Jiangsu province, China. This facility fits into Caterpillar's China and emerging markets, strategy, and it will be a key element of the company's worldwide excavator manufacturing footprint. The announcement follows the signing of an investment agreement between Caterpillar and Jiangning Science Park Administrative Committee (JSPAC). The proposed facility will be located in the Jiangning Science Park district (JSP) and 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 small-sized hydraulic excavators for China," said Tom Bluth, Caterpillar Vice President, who is based in Beijing and has responsibility for Asia Pacific manufacturing operations. "I would like to thank JSPAC for its support as we have worked to choose the best location for this new facility. This site offers Caterpillar a business friendly environment with excellent access to transportation facilities, established suppliers and a skilled workforce," Bluth said.

The proposed facility will be located on 37 acres (150,000 square meters) of land in the JSP, and Caterpillar intends to begin construction of the 365,000 square foot manufacturing building in early 2009 pending appropriate governmental approvals.

"The plans to build this hydraulic excavator manufacturing facility in Nanjing further demonstrate Caterpillar's commitment to China," said Mary Bell, Caterpillar Vice President with responsibility for the Building & Construction Products Division. "Our customers in China are demanding a greater variety of construction equipment, and as a result, the small machine market is growing rapidly," she added. "This new investment will enable Caterpillar to provide our customers in China with the world's best products and services."

The small-sized hydraulic excavator facility in Nanjing is the most recent example of Caterpillar's expanding manufacturing presence in China. Caterpillar core products manufactured in China include: hydraulic excavators, track-type tractors, motor graders and paving products, wheel loaders, 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.

Today, Caterpillar has 16 operations -- both joint venture and wholly owned businesses -- in China. Caterpillar has developed a strong supply base, which fits well with its operations and investment strategy. Team Caterpillar is also growing rapidly in China. By the end of this year, Caterpillar will employ over 7,000 people. The company distributes its products through five independent dealers, which offer customers throughout China the best-in-class service and support that have made Caterpillar a global leader.

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com.

SAFE HARBOR
Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will," "expect," "anticipate" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, changes in economic conditions; currency exchange or interest rates; political stability; market acceptance of the company's products and services; ability to successfully integrate and obtain anticipated synergy from acquisitions and strategic alliances; significant changes in the competitive environment; epidemic diseases; changes in law, regulations and tax rates; and other general economic, business and financing conditions and factors described in more detail in the company's Form 10-Q filed with the Securities and Exchange Commission on May 2, 2008. This filing is available on our website at www.cat.com/sec_filings.

We do not undertake to update our forward-looking statements.

SOURCE Caterpillar
CONTACT: Kate Wang of Caterpillar (China) Investment Co., Ltd.,
(86-10) 5921 0112,
Mobile (86) 1350 108 4027,
wang_kate@cat.com
Web site: http://www.CAT.com

Caterpillar chairman, CEO visits facility in China

Beijing, (ANTARA Nes/ PRNewswire-AsiaNet) - Caterpillar Inc. (NYSE: CAT) Chairman and CEO Jim Owens visited Caterpillar's newest prime product manufacturing facility in China, Caterpillar Paving Products (Xuzhou) Limited (CPPX), during his most recent visit to Asia. The CPPX facility produces Asphalt Compactors, Cold Planers and Soil Compactors.

This facility is an essential part of Caterpillar's global strategy to competitively manufacture products in all regions of the world for Caterpillar customers.

"We are continuing to make significant new investments in China to provide our customers here with the world's best products and services," said Owens.

"The paving facility is one of many examples of our commitment to this market."

In addition to supplying paving products to customers in China, CPPX will also supply the Asia Pacific region, Africa, the Middle East and parts of the Commonwealth of Independent States.

"This facility joins our other paving product plants, which are strategically located in the Americas and Europe. It is the centerpiece of our growing paving business in the Asia Pacific region and will ensure Caterpillar's ability to support the infrastructure needs of a growing China," said Mike Baunton, Caterpillar Vice President with responsibility for the Global Paving business.

"CPPX is also a critical addition to our unsurpassed global footprint which will support our worldwide customers."

Caterpillar is also currently building a new engine campus in Wuxi, China and a facility in Suzhou that will produce world-class medium wheel loaders and motor graders.

In addition to its core machinery, engine and component manufacturing locations in China, Caterpillar's integrated service businesses include logistics, remanufacturing, financial leasing, training, marketing and research and development.

Caterpillar Dealers in China continue to expand their network of dealer branches and Cat Rental Stores, which employ more than 5000 people and use the most advanced service tools to provide the best support services in the industries they serve.

"Chinese customers can really count on Caterpillar," said Rich Lavin, Caterpillar's Group President with responsibility for Asia Pacific.

"Being in business is more than just building machines and engines. Caterpillar is a partner and provider of sustainable development solutions for China."

Lavin and other business leaders recently attended the China Development Forum in Beijing, which highlighted social and economic sustainability in China and long-term energy-saving strategy.

Caterpillar helped China build the world's largest coal methane gas power plant, which will significantly reduce greenhouse gas emissions, improve mine safety and provide an environmentally friendly fuel source to generate electricity.

In February of this year, China experienced the worst winter storm in more than 50 years.

The Caterpillar Foundation made a donation of $150,000 to the Red Cross to assist in snowstorm relief efforts.

In addition, Caterpillar Dealers also provided machinery free of charge to help clear major roads and highways, and generator sets to provide electricity for hospitals and to support telecommunication needs in the eastern region of China, an area where the country was hardest hit.

"Caterpillar has a long history in China. This is our home," said Tom Bluth, Caterpillar Vice President, who is based in Beijing and has responsibility for Asia Pacific manufacturing operations.

"We will continue to look for ways to contribute to the communities where we all work and live," he added. Caterpillar's headquarters for Asia Pacific manufacturing operations was moved to Beijing from Tokyo, Japan in 2006.

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent.

With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com

SAFE HARBOR

Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements.

In this context, words such as "will," "expect," "anticipate" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar.

It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, changes in economic conditions; currency exchange or interest rates; political stability; market acceptance of the company's products and services; significant changes in the competitive environment; epidemic diseases; changes in law, regulations and tax rates; and other general economic, business and financing conditions and factors described in more detail in the company's Form 10-K filed with the Securities and Exchange Commission on February 22, 2008.

This filing is available on our website at http:/www.cat.com/sec_filings We do not undertake to update our forward-looking statements.

SOURCE: Caterpillar Inc.
CONTACT: Kate Wang of Caterpillar (China) Investment Co., Ltd.,
(86-10)-5921-0112,
Mobile, (86)-1350-108-4027,
wang_kate@cat.com
Web site: http://www.CAT.com

COPYRIGHT © 2008

Caterpillar completes acquisition of Shandong SEM Machinery Co

Caterpillar will continue investing in employee development, product improvements and customer support programs at SEM

Qingzhou City, (ANTARA News/PRNewswire-AsiaNet) - Caterpillar Inc. (NYSE: CAT) has received final regulatory approval and completed the purchase of the remaining shares of Shandong SEM Machinery (SEM), a leading wheel loader manufacturer in China. Caterpillar purchased a minority stake in SEM in 2005 as part of its commitment to support its growing customer base in the Chinese construction equipment industry.

"Teamwork is one of Caterpillar's core values, and since our initial investment in SEM, we have collaborated with SEM management and with the Shandong and Qingzhou City governments to make improvements in every aspect of the SEM business," said Rich Lavin, Caterpillar group president with responsibility for Caterpillar's business in Asia Pacific. "Caterpillar has worked together with SEM managers and employees to improve workplace safety, employee training, operational excellence, product quality and the product technology of SEM."

In addition to SEM wheel loaders, Caterpillar core products manufactured in China include hydraulic excavators, track-type tractors, motor graders, 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.

"We are pleased to be part of Team Caterpillar and look forward to sustained growth as we continue to produce high quality products that will meet customer's expectations," said SEM Chairman Wang Chunquan. "We have built a very solid foundation with Caterpillar based on mutual trust and respect, and this strong relationship has benefited the Chinese customers who use SEM products every day."

As a responsible corporate citizen, Caterpillar will continue working closely with the provincial and local governments to sustainably develop the SEM business and support the environment. Similarly, Caterpillar will build on the valuable relationships SEM has with local suppliers and dealers.

"We are committed to bringing the greatest value possible to our SEM customers," said Tom Bluth, Caterpillar vice president with responsibility for Asia Pacific manufacturing operations. "We have already started by introducing new models of SEM products and by providing customers with the ability to finance equipment purchases through Caterpillar (China) Financial Leasing Co., Ltd."

In addition to its core machine, engine and component manufacturing locations in China, Caterpillar operations in China also include logistics, remanufacturing, financial leasing, training, marketing and research and development. Caterpillar's independent dealer network also provides sales and product support to customers across greater China.

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2007 sales and revenues of $44.958 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.

More information is available at http://www.cat.com

SAFE HARBOR

Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will," "expect," "anticipate" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, changes in economic conditions; currency exchange or interest rates; political stability; market acceptance of the company's products and services; significant changes in the competitive environment; epidemic diseases; changes in law, regulations and tax rates; and other general economic, business and financing conditions and factors described in more detail in the company's Form 10-K filed with the Securities and Exchange Commission on February 3, 2007.

This filing is available on our website at http://www.cat.com sec_filings. We do not undertake to update our forward-looking statements.

CONTACT: Jim Dugan,
Corporate Public Affairs of Caterpillar Inc.,
+1-309-494-4100, cell, +1-309-360-7311,
dugan_jim@cat.com, or
Kate Wang,
Corporate Public Affairs
of Caterpillar (China) Investment Co., Ltd.,
+(86-10) 5921 0112, cell, +(86) 1350 108 4027,
wang_kate@cat.com
Web site: http://www.CAT.com
(CAT)
SOURCE: Caterpillar Inc.

COPYRIGHT © 2008 - ANTARANEWS