After entering Chinese market, Caterpillar brought in their advanced operational concept and marketing thoughts while competing with the construction machinery enterprise in domestic market, pushing forward the faster development of construction machinery market in China.

Against the background that the Central China Economic District grew to be a strategic development district in China, several World Top 500 Enterprises including Caterpillar saw the commercial opportunities acutely in this District.

Caterpillar (China) Investment Co., Ltd. (Caterpillar China), the most famous equipment supplier in the field of global earthmoving machinery industry as well as one of the World Top 500 Enterprises attended the Expo Central China 2011 held from September 26 to 28. Jin Liwen, the Chairman of the Board of Caterpillar China made an address on the expo. “Henan is a large province of equipment manufacturing industry, owning numbers of leading enterprises such as Pingdingshan Coal Mine Machinery Co., Ltd., Zhengzhou Coal Mining Machinery Group Co., Ltd., CITIC (formerly China International Trust and Investment Corporation) Heavy Industries Co., Ltd. and Zhengzhou Yutong Heavy Industries Co., Ltd. Besides the equipment manufacturing lines, Caterpillar have the plan to invest more on the new energies, including the exploration and usage of coal mine methane.”

•Rapid Expansion as Giant Enterprise

It might be due to the limitation of the industrial features, Caterpillar was still relatively unfamiliar to Chinese customers. Timothy Elder, the General Manager of Caterpillar China once said:” In China, everyone knows that Coca Cola is a giant enterprise. But Caterpillar has a larger scale, and we just stand in a field that is not so familiar to the masses. We believe that Caterpillar will become a ‘star’ in such as an agricultural country as China.” 

Early in 1975, Caterpillar began the business in China, and invested to construct plants in China in 1976. The company started to lay their business out in China from the first deal—the order of petroleum drilling equipments. From 1994 to 2009, Caterpillar set up five production bases of engines, four production bases of equipments and two production bases of spare parts successively in Xuzhou, Guangzhou, Wuxi, Tianjin, Suzhou and Shanghai.
　　
On April 27, 2011, the First Tractor Co., Ltd. (YTO) officially signed a long-term strategic cooperation agreement with Caterpillar China in terms of forging business. It was anticipated that by the year 2015, the forging business affiliated to YTO would get the revenues of foreign trade up to RMB 200 million Yuan depriving from the cooperation with Caterpillar. 

In fact, the cooperation between YTO and Caterpillar started from 2002, and rapidly moved to the normal development routes since 2007. The products on the supply order increased to more than 50 forging parts at present from the single kind of chain wheel. The General Manager of YTO, Liu Jiguo told the media that the signature of the long-term strategic cooperation agreement between YTO and Caterpillar was an important milestone on the developing way of YTO to learn the international advanced management, fasten the transformation of the enterprise and upgrade the industrial structures, “it is also the crucial result for YTO to practice the concept of Zero Deficiency for Quality and Standard Internationalization.”
　
At the 6th Expo Central China, the experts from Henan Province said that equipment manufacturing industry was the pillar industry in Henan, and the mining and hoisting machinery industry also had the advantages in domestic China with a greater developing momentum. They believed that the introduction of Caterpillar’s advanced concept of sustainable development and the latest technology for manufacturing high-end equipments would promote the transformation process of local economy.

•Noticeable Merging and Acquisition Mode