Caterpillar Announces Remanufacturing Joint Venture With China Yuchai

(chinatrucks.com, Dec.15, 2009)Caterpillar Inc. (NYSE: CAT), through Caterpillar (China) Investment Co., Ltd. (Caterpillar China), and China Yuchai International Limited (NYSE: CYD), through its main operating subsidiary, Guangxi Yuchai Machinery Co., Ltd. (Yuchai) have signed a joint-venture agreement to establish a company to provide remanufacturing services for Yuchai diesel engines and components and certain Caterpillar diesel engines and components. The new company will provide state-of-the-art remanufactured engines and components to its customers worldwide by leveraging remanufacturing technology through Caterpillar's Remanufacturing and Sustainable Solutions Division (Cat Reman).

"We look forward to developing the new company using our remanufacturing expertise in order to provide sustainable, cost-effective solutions for customers, and ultimately, growing this new market," said Steve Fisher, Caterpillar vice president with responsibility for remanufacturing. "Along with the environmental benefits, the new company will create a platform for more green jobs and technology."

Remanufacturing is a highly sophisticated form of recycling, taking end-of-life components and transforming them into like-new products through salvage technology and state-of-the-art manufacturing practices. Caterpillar is a global leader in remanufacturing technology, recycling more than 100 million pounds of end-of-life iron annually, much of which is used for remanufactured engine, transmission and hydraulic components.

Yuchai is the key diesel engine manufacturer and the largest producer of internal combustion engines in China. Its engine product line family includes mini, light, medium and heavy-duty engines utilized for the truck, commercial bus, generator and passenger car markets.

"We are looking forward to achieving our new enterprise development target through the cooperation in remanufacturing, and we are confident we can provide value-added services exceeding our customers' needs, while meeting the needs of our society and environment," said Yan Jie, Yuchai vice general manager with responsibility for remanufacturing.

The remanufacturing business is one of the fastest growing industries, leveraging cutting-edge technology to help customers remain both competitive and profitable. Remanufacturing is also an environmentally friendly repair option as the process reduces waste and minimizes the need for raw materials to make new parts.

The Caterpillar China-Yuchai joint venture, once approved by the applicable regulatory authority, will be the first remanufacturing joint venture for Caterpillar in China. Through the platform of Caterpillar's global remanufacturing business and this newly formed joint venture, Caterpillar China and Yuchai will support the Chinese government's goal of achieving a sustainable economy based on industry-leading manufacturing expertise and environmentally friendly business practices.

"Caterpillar has a long history in China. This is our home," said Jiming Zhu, Caterpillar vice president with responsibility for the China Division. "We are committed to helping China develop sustainable solutions in every province."

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