| "2008 years, we plan to increase the world's 2.3 billion | | | | Asia, Africa are in high growth markets. |
| U.S. dollars of new investment, of which a large part | | | | Reporter: So, you can not be revealed in the Chinese |
| will be invested in emerging markets including China." | | | | market this year, Caterpillar's new investment plans? |
| March 21, Caterpillar Group President Pereira text | | | | Pereira text: It is because of the Asia-Pacific, including |
| (RichLavin) Life Building in Beijing's Chaoyang office | | | | China, the steady growth of emerging market |
| door this reporter an exclusive interview revealed. | | | | performance, so this operation will increase our |
| In fact, Caterpillar Investment Group is carrying out | | | | investment decision. |
| investigations in China, as the investment project is | | | | Specifically, in 2007 we have focused increased in |
| located. | | | | Suzhou, Xuzhou, Wuxi, Tianjin investment. One new |
| This from the United States, "Machine King" a few | | | | wheel loader in Suzhou factory has adopted the latest |
| years ago to buy seven known mechanical | | | | technology based, market-leading product technology. |
| engineering companies in China, three years ago | | | | New Caterpillar Parts in Wuxi Industrial Park; in Tianjin, |
| completed the acquisition of Shandong Engineering | | | | we have not only established a track assembly plant, |
| Machinery Group after a stunning move no longer. | | | | an increase of last year the new engine production |
| According to reports, Pereira article earlier this year, | | | | project group. The increase in new investment in China, |
| just by the Caterpillar Caterpillar China Investment | | | | we are not down to the country in which the number |
| Corporation Chairman and was promoted to global | | | | of specific investment. |
| chairman, this is a special trip back to Beijing to | | | | Reporter: Does this mean that Caterpillar will increase |
| participate on March 22 organized by the National | | | | direct investment, and to suspend acquisition of |
| Development and Reform Commission, "2008 China's | | | | Chinese enterprises? |
| development Forum. " | | | | Pereira article: Speaking of direct investment, be sure |
| Reporter: U.S. subprime mortgage crisis is spreading to | | | | the investment amount will be fully reflected the |
| the world, in this context, Caterpillar raised its 2008 | | | | importance of the Chinese market. In fact, the |
| financial results, why the expectations? | | | | investment is still continued in several cities, including |
| Pereira text: Indeed. Caterpillar profit in 2007 reached | | | | spare parts and other ancillary equipment will be the |
| record levels, but according to the Board expected in | | | | focus of investment, rather than take direct acquisition |
| 2008 we will reach in the global growth of 5% -10%, | | | | strategy. |
| not only sales, is also the case for profit growth. | | | | In addition, we will be more concerned about the rise |
| Although the subprime mortgage crisis on our sales | | | | of central China strategy, our work group has been |
| and profits have more impact, but we will be rapid | | | | with the Anhui Provincial government officials early |
| growth in the global market, it raised its earnings | | | | communication, planning new projects. We also |
| forecasts, primarily Caterpillar's sales structure has | | | | welcome Hunan and Hubei in central come to discuss |
| changed. In 2007, we in the U.S. market and overseas | | | | investment. In fact, on the increase in new investment |
| market sales ratio of 44%: 56%, 50% a few years | | | | is not limited to Tianjin, the investigation group is also |
| ago has always been: 50%. This means that we rely | | | | looking at different places, Tianjin, Anhui is one of |
| on the U.S. market in the lower, other regions such as | | | | station. |