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Caterpillar to purchase South Korean component manufacturer
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Caterpillar is reportedly ready to move on a deal to buy
JCS Co. Ltd. (Caterpillar)
According to Associated Press, Caterpillar Inc. has stated that it plans to buy JCS Co. Ltd., a subsidiary of Jinsung T.E.C. Company, a South Korean manufacturer of components for earthmoving and industrial machinery.
Caterpillar, which is based in Peoria, Ill., is the world’s largest manufacturer of mining and construction equipment. The deal between Caterpillar and Jinsung T.E.C. Company is subject to regulatory approval and is expected to be completed early next year. The deal will expand Caterpillar’s manufacturing capabilities in Asia giving the company its first factory in South Korea. Caterpillar already has manufacturing plants in China, India, Indonesia, and Australia.
Caterpillar has made significant investments in the Asia/Pacific region to support a growing base of customers, said David Bozeman, Caterpillar vice president with responsibility for undercarriage production. "This strategic acquisition will improve Caterpillar's supply chain and component capacity in support of Caterpillar's long-term machine capacity expansion plans in Asia," he said.
Since the current recession, Caterpillar has laid off over 22,000 workers due to weak demand. The company has said they are counting on an increased demand for its mining and construction equipment in Asia next year to help the company move past the recession.
For more information check out this article, along with The New York Times Deal Book section.
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