Caterpillar To Build New Factory
by Big Dog on Sep 30, 2010 at 04:18 Political
Looks like Obama was right when he said the stimulus money would allow Caterpillar to put people to work (though the leader of the company denied he made that claim). Caterpillar is building a new factory to build mini hydraulic excavators.
The only problem is that Caterpillar will be building the factory in China.
I wonder if Obama will add all the Chinese workers who are employed to build the factory and those who will be employed to work at it in his jobs created number.
I mean, this is Obama, the master of double talk, and he did not say that the jobs the stimulus would create would be in America…
Cave Canem!
Never surrender, never submit.
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Tags: caterpillar, china, factory, jobs
Full disclosure… I work at Caterpillar. We are growing our operations in China to meet demand from Chinese customers, although Caterpillar is a net exporter to China from the U.S. You might also find it of note that in the last few months we have announced more than $1 billion in new factories and facility upgrades for our U.S. operations. We broke ground on a new plant in Texas last week and a few weeks ago had a grand opening for another plant in Arkansas. In Illinois, we are investing about $500 million in two of our largest factories to increase capacity for mining trucks and to build a new product called a mining shovel. I forgot to mention the new factory in North Carolina that we announced several weeks ago. Yes we are also expanding outside of the U.S., if we did not, we would not be able to compete around the world. But peoiple need to understand that just because a company invests in some other country, does not mean it is a “loss” for the U.S. Our expanding operations in China support our U.S. operations and allow us to export to China from the U.S. The mini excavators to be made at the new facility in Wujiang can not be made in the U.S. and shipped to China for sale because we would lose money on every machine. The cost of delivery and shipping for smaller machines is too great.
Thanks for the timely information Jim. I hope Caterpillar does well.
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Most of the regular readers here know I am retired from Cat. Here’s the announcement in Tuesday’s local paper:
http://www.pjstar.com/business/x211928149/Cat-to-build-plant-in-China
I certainly don’t mind if Cat builds a plant in China in order to satisfy Chinese demand, as long as they maintain their roots in the US- it is the companies that move their entire operations overseas that chap my butt.