Caterpillar (NYSE: CAT) recently announced that it will open two new factories in Tongzhou, Jiangsu Province of China. These facilities will manufacture large wheel loaders according to the needs and requirements for quarry and mining applications in China and other markets. With the announcement of these proposed facilities the company now operates 27 facilities, out of which four are under construction. Caterpillar’s seriousness towards emerging markets and China is evident from the fact that in early 2012 it acquired its Chinese rival ERA Mining Machinery Ltd.
The company has captured an approximate 6 percent market share in China’s machinery sector, but the ERA Mining loss report is a setback at a time when the country’s homegrown machinery firms are beginning to threaten Caterpillar, as they expand in China and also worldwide, says The Financial Times.