Date: September 14, 2006
Source: Caterpillar Inc.
In a ceremony held at the Diaoyutai State Guesthouse in Beijing, Caterpillar's Group President Stu Levenick and Director General Madame Zhao Jia Rong, director of China's National Development and Reform Commission (NDRC), signed a letter of intent to promote the development of China's remanufacturing industry.
"Remanufacturing is a highly sophisticated form of recycling that takes end-of-life components and turns them into like-new products for a fraction of the cost," said Levenick. "Our remanufacturing business is one of the fastest growing parts of our company because this technology helps our customers remain competitive and promotes a sustainable environment by reducing waste and the need for raw materials to make new parts."
Madame Zhao Jia Rong said, "The letter of intent signing lays a solid foundation to promote cooperation in the area of remanufacturing. It is beneficial for China to learn the expertise of foreign countries and to promote the development of the recycling economy."
Caterpillar Remanufacturing Services is the first wholly owned foreign entity to receive a remanufacturing license in China. To support its Chinese customers, dealers and other customers in the Asia Pacific region, Caterpillar recently opened a regional remanufacturing center in the Lingang Industrial Area in Shanghai.
For more information, visit: www.CAT.com.
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Company signs letter of intent with China's National Development and Reform Commission to develop and promote environmentally sustainable industry
Caterpillar Inc. (NYSE: CAT) and China's National Development and Reform Commission (NDRC) have signed a letter of intent through which Caterpillar and NDRC will promote the development of China's remanufacturing industry.
Caterpillar Group President Stu Levenick and NDRC Resources Conservation & Environmental Protection Department Director General Madame Zhao Jia Rong signed the letter of intent at a ceremony held today at the Diaoyutai State Guesthouse in Beijing.
"Remanufacturing is a highly sophisticated form of recycling that takes end-of-life components and turns them into like-new products for a fraction of the cost," said Levenick. "Our remanufacturing business is one of the fastest growing parts of our company because this technology helps our customers remain competitive and promotes a sustainable environment by reducing waste and the need for raw materials to make new parts."
Madame Zhao Jia Rong said, "The letter of intent signing lays a solid foundation to promote cooperation in the area of remanufacturing. It is beneficial for China to learn the expertise of foreign countries and to promote the development of the recycling economy."
As part of the letter of intent, Caterpillar will provide expertise to assist NDRC and Chinese research institutions in supporting the development of the remanufacturing industry in China. Caterpillar and NDRC have also agreed to form a Joint Working Group on Remanufacturing Programs to discuss matters related to the remanufacturing cooperation program in detail and to coordinate and promote further cooperation by both parties in sustainable manufacturing and other areas.
Caterpillar Remanufacturing Services is the first wholly owned foreign entity to receive a remanufacturing license in China. To support its Chinese customers, dealers and other customers in the Asia Pacific region, Caterpillar recently opened a regional remanufacturing center in the Lingang Industrial Area in Shanghai.
"We are proud to be a pioneer in this industry and look forward to supporting China's 4R initiative: reduce, reuse, recycle and remanufacture," said Steve Fisher, Caterpillar vice president for remanufacturing. "Through our business model and with this letter of intent, Caterpillar will support the Chinese government's goal of achieving a sustainable economy based through recycling."
With more than 30 years of experience, Caterpillar is a global leader in remanufacturing technology. In 2005, customers from around the world returned 61.2 million kg (135 million pounds) of components to Caterpillar Remanufacturing Services. Close to 70 percent of those 2.2 million end-of- life units were remanufactured to produce Cat Reman products, with the remaining percentage recycled.
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2005 sales and revenues of $36.339 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. More information is available at www.CAT.com.
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