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Construction Industries 9
WHAT THE WORLD NEEDS | 2011 YEAR IN REVIEW
Chairman’s
Message
Construction
Industries
Customer &
Dealer Support
Financial Products &
Corporate Services
The Caterpillar
Foundation Leadership Performance
Resource
Industries
Energy &
Power Systems
China has a staggering list of infrastructure needs to fulfill by
2025, when its urban population is expected to reach 350 million
people. An estimated 600,000 miles of new roads, 170 mass
transit systems and 97 new airports are on the list, for starters.
These types of projects, along with new housing and power
projects, continue to present Caterpillar and Cat® dealers with
enormous opportunities in the Chinese market. So much so that
one of eight strategic imperatives for Caterpillar to achieve
between 2011 and 2015 is to, quite simply, “Win in China.”
A key to realizing this goal is to focus on specific industries
playing central roles in China’s growth. This focus, along with
the strong support of local Cat® dealers, is enabling Caterpillar
to make significant strides in our participation in the growing
Chinese Quarry & Aggregate industry, which accounted for
50 percent of global cement production in 2011.
During 2011, China Engineers Ltd., the Cat® dealer in southern
China, won a critical fleet deal with China Resource Cement
(CRC), a major Chinese cement producer, closing equipment
sales of 27 units of quarry trucks, wheel loaders and excavators.
This transaction led to breakthroughs with two other Chinese
cement producers for a combined 23-unit sale of similar
equipment. In addition, Conch Cement, the largest cement
producer in China, entered into a field trial arrangement of
772 off-highway trucks. Conch is already one of the largest
customers of Cat large wheel loaders in China and owns more
than 120 Cat engine products.
The 2011 successes represent a growing shift in priorities by
Chinese machine purchasers, who traditionally have valued
initial purchase price over total operating costs. The passage of
time is helping to underscore Caterpillar’s value proposition of
providing the lowest operating costs over the life of the product.
Conch bought its first 988 unit in 1997 and, as Chairman Guo
Wensan noted, “It is still working well.” He added, “Over the
years, Cat® products have helped us to improve productivity
and efficiency, and to keep operation costs down.”
As more customers in China develop similar appreciation for
Cat products, Caterpillar’s mandate to “Win in China” moves
closer to becoming reality.
Paving
the Way
Caterpillar is scoring big wins in the
world’s largest cement market.
The growing Chinese Quarry &
Aggregate industry accounts
for 50 percent of global
cement production.