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For Worldwide Release: December 6, 2005 Caterpillar Extends ...

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<strong>For</strong> <strong>Worldwide</strong> <strong>Release</strong>: <strong>December</strong> 6, <strong>2005</strong><br />

<strong>Release</strong> Number: M23PR05<br />

News<br />

<strong>Caterpillar</strong> <strong>Extends</strong> Global Marine Engine Manufacturing Presence<br />

Shared Technology and Expertise Brings MaK M 25 Marine Engine Production to<br />

World-Class China Facility<br />

<strong>Caterpillar</strong> ® has expanded its global presence by investing additional experience, knowledge and<br />

quality into one of its key manufacturing facilities in China, <strong>Caterpillar</strong> Motoren Guangdong Co.<br />

Ltd. Some time ago, the facility began producing MaK M 25 marine engines for propulsion<br />

and genset applications. Manufacturing for this medium-speed engine is now closer to the<br />

growing number of Asian shipyards, reducing delivery times and transportation costs for<br />

customers.<br />

Expansion of operations at <strong>Caterpillar</strong> Motoren Guangdong is part of <strong>Caterpillar</strong>’s long-term and<br />

ongoing strategy to be a global manufacturer of diesel and natural gas engines. The company is<br />

focused on growing its presence in China and now operates 13 facilities/joint ventures in the<br />

country, with more than 4,300 people employed in China.<br />

Expanding Guangdong Operations<br />

Located 12 km from Guangzhou, <strong>Caterpillar</strong> Motoren Guangdong manufactures, tests and<br />

supplies medium-speed MaK engines. The site has produced high quality MaK M 453 C in-line<br />

diesel engines for ship propulsion, genset use and power plant operation since 1996. By adding<br />

manufacturing of the MaK M 25 engine, the facility has expanded its medium-speed engine<br />

production.<br />

The M 25 features a power range from 1800 kW (2450 hp) to 2970 kW (4040 hp). It has a bore<br />

of 255 mm and a stroke of 400 mm, with speeds of 720 rpm and 750 rpm. The M 25 achieves<br />

balanced results in terms of power utilization, operational reliability, longevity, ease of


maintenance, fuel consumption and emissions. The engine was launched in 1996 and since then<br />

<strong>Caterpillar</strong> has sold MaK M 25 engines representing a total output of more than 1,600 MW<br />

around the world. The M 25 is primarily used as a propulsion engine for tugs, fishing vessels,<br />

supply vessels and coasters, as well as a genset engine for vessels such as container ships,<br />

RoRo ferries and RoPax ships.<br />

“Adding engine production to <strong>Caterpillar</strong> Motoren Guangdong exemplifies <strong>Caterpillar</strong>’s<br />

long-term commitment to growth and technical excellence in China,” said Roberto Dionisio,<br />

managing director for <strong>Caterpillar</strong> Marine Power Systems. “The facility has a superior history<br />

of engine production. This legacy has now carried over to the M 25, and customers will benefit<br />

from proven expertise in manufacturing marine engines.”<br />

With the addition of M 25 production came a comprehensive upgrade of <strong>Caterpillar</strong> Motoren<br />

Guangdong’s assembly line capacity, test beds and quality control operations. Being part of the<br />

global <strong>Caterpillar</strong> production and quality management system, Guangdong operations provide<br />

the same product excellence as the other <strong>Caterpillar</strong> marine engine manufacturing sites located in<br />

the United States, Germany, Belgium and the United Kingdom. In fact, the M 25 engines being<br />

assembled in Guangdong utilize component packs completely supplied by <strong>Caterpillar</strong> Motoren<br />

GmbH & Co. KG, Germany, thus guaranteeing identical engine quality.<br />

Guangdong operations were formed in 1994 by two diesel engine builders with a tradition of<br />

success dating back more than 90 years: Germany’s MaK Motoren GmbH & Co. KG and<br />

China’s Guangzhou Diesel Engine Factory. Now, <strong>Caterpillar</strong> Motoren Guangdong Co. Ltd is<br />

a wholly owned company of <strong>Caterpillar</strong> Inc. and represents the largest medium-speed engine<br />

manufacturing site in Southern China. According to Plant Manager Burton E. Dillin, the facility<br />

is poised to reach high production levels in 2006 to meet the increasing demand for M 25<br />

engines in both domestic and international marine markets. An excellent example is the<br />

MaK 9 M 25 actually exhibited at Marintec China: It will soon propel a coaster vessel for<br />

Zhejiang Aoli Shipping Co. Ltd, currently being built by the Linghai Hongsheng Shipbuilding<br />

Co. of China.<br />

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“<strong>Caterpillar</strong> ® Marine Power Systems brings the same premier quality and service to our<br />

China operations that we provide at our other world-class facilities,” said Dionisio. “We have<br />

established a long-standing tradition of manufacturing excellence backed by innovative engine<br />

designs, sophisticated engineering and superior engine emission reduction technologies such as<br />

ACERT Technology.”<br />

Expanding a <strong>Worldwide</strong> Presence<br />

Operating from its Hamburg, Germany, headquarters, <strong>Caterpillar</strong> Marine Power Systems sets<br />

forth a global marine industry presence focused on world-class manufacturing, service and<br />

support. <strong>For</strong>med by the merger of sales and service operations for Cat-branded and MaKbranded<br />

marine products, <strong>Caterpillar</strong> Marine Power Systems provides shared engineering,<br />

technology investments, research and development to a worldwide network of manufacturing<br />

facilities, parts and service support locations.<br />

As a whole, <strong>Caterpillar</strong> Inc. sells products in more than 200 countries and operates nearly<br />

300 facilities in 40 countries on six continents. Company specialists have the expertise,<br />

well equipped workshops and extensive parts inventories needed to provide individual<br />

and comprehensive service tailored to customers’ needs. Facilities include more than 110<br />

manufacturing locations and about 170 office and other facility locations. The company’s<br />

global footprint includes nearly 200 Cat ® dealers, 1,600-plus branch stores, about 1,400 Cat<br />

Rental Stores and more than 400 FG Wilson, MaK, Perkins ® and Solar ® distributors.<br />

The company itself has more than 84,000 committed employees, while <strong>Caterpillar</strong> dealers<br />

employ an additional 99,000-plus worldwide.<br />

With more than 40 years of non-U.S. manufacturing experience, <strong>Caterpillar</strong> has continued to<br />

meet the quality demands of its worldwide customers. Today, <strong>Caterpillar</strong> has 65 manufacturing<br />

facilities located outside the United States, which provide the same superior quality the company<br />

has consistently given to its customers. Expansion of the <strong>Caterpillar</strong> Motoren Guangdong facility<br />

continues this international reputation for quality.<br />

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[Characters: 5,991]<br />

[Pictures available upon request:<br />

<strong>Caterpillar</strong> Motoren Guangdong – Outside view of facility<br />

<strong>Caterpillar</strong> Motoren Guangdong – Test bed with MaK 9 M 25]<br />

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About <strong>Caterpillar</strong> Marine Power Systems<br />

<strong>Caterpillar</strong> Marine Power Systems, with headquarters in Hamburg, Germany, brings together all<br />

sales and service activities for Cat ® and MaK branded marine products within <strong>Caterpillar</strong> Inc.<br />

This organization provides premier marine power solutions (high and medium speed with<br />

outputs from 11 kW to 16,000 kW) and customer service from a single source for the global<br />

commercial/ocean-going and pleasure craft markets. The <strong>Caterpillar</strong> Marine Power Systems<br />

sales and service network includes more than 1800 dealer locations worldwide and is well<br />

positioned to support the customers wherever they are. More information is available at<br />

www.cat-marine.com or www.mak-global.com.<br />

About <strong>Caterpillar</strong><br />

<strong>For</strong> 80 years, <strong>Caterpillar</strong> Inc. has been building the world’s infrastructure and, in partnership<br />

with its worldwide dealer network, is driving positive and sustainable change on every continent.<br />

With 2004 sales and revenues of $30.25 billion, <strong>Caterpillar</strong> is a technology leader and the<br />

world’s leading manufacturer of construction and mining equipment, clean diesel and natural gas<br />

engines and industrial gas turbines. More information is available at www.cat.com.<br />

Editorial information for Editorial information for<br />

Americas: Europe, Africa, Middle East<br />

and Asia Pacific:<br />

Monica Trepanier Ronald Brügmann<br />

Phone: +1 309 578-3985 Phone: +49 40 2380-3104<br />

E-mail: trepanier_monica_a@CAT.com E-mail: bruegmann_ronald@CAT.com<br />

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