PEORIA, Ill., Nov. 30 /PRNewswire-FirstCall/ -- Caterpillar Inc. (NYSE: CAT) announced today it has entered into an agreement to acquire JCS Co., Ltd., a subsidiary of Jinsung T.E.C. Co., Ltd., a South Korea-based manufacturer that specializes in producing undercarriage components for earthmoving and other off-road machinery. The acquisition builds on a strong, existing relationship between Caterpillar and Jinsung T.E.C. Currently Jinsung supplies Caterpillar with rollers, idlers and metal-faced seals used on a wide range of Caterpillar machines. The acquisition of JCS will provide Caterpillar proprietary technology to competitively produce highly engineered seals that will improve machine undercarriage reliability and durability.
"In recent years, Caterpillar has made significant investments in its emerging market operations in Asia Pacific to support a growing base of customers in the region," 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."
The JCS seal manufacturing facility will be the first factory for Caterpillar in South Korea. It will complement Caterpillar's existing footprint in Asia Pacific, which includes manufacturing facilities in China, India, Indonesia and Australia.
"As one of the largest economies in the world, and with a well developed and sophisticated base of suppliers, South Korea is growing in importance as a market for Caterpillar products and as a potential location for manufacturing in the region," said Rich Lavin, Caterpillar group president with responsibility for Asia Pacific.
The acquisition, which is subject to, among other things, regulatory approval, is expect to be finalized in early 2010.
For more than 30 years, Jinsung T.E.C. Co., Ltd. has specialized in the design and manufacture of heavy equipment spare parts including track rollers, seal groups and front idlers for excavators and bulldozers. A reputation for top quality, prompt and accurate deliveries at competitive prices have earned Jinsung T.E.C. favored supplier status with many world-renowned companies.
"As a supplier to Caterpillar for several years, we have built a strong relationship," said Chairman, Mr. Woo-suk Yoon. "JCS, much like Caterpillar, is known for world-class technology, its commitment to quality and a strong customer focus. It will be an excellent complement to both businesses for JCS to become part of the Caterpillar family."
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of $51.324 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com.
About Jinsung T.E.C.
Since its establishment in 1975, Jinsung T.E.C. has manufactured the undercarriage parts, roller, idlers, and seal rings for excavators, bulldozers, and other equipment. Recording sales and revenues of $85 million in 2008, it has manufacturing plants in Korea and China and sales corporations in Japan and USA as the global representative company specialized in undercarriage. More information is available at http://www.jinsungtec.com.
Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Caterpillar Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will," "would," "expect," "anticipate," "should" or other similar words and phrases often identify forward-looking statements made on behalf of Caterpillar. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, (i) adverse change in general economic conditions; (ii) adverse change in the industries Caterpillar serves including construction, infrastructure, mining, energy, marine and electric power generation; (iii) Caterpillar's ability to manage material, including steel, and freight costs; (iv) Caterpillar's ability to generate cash from operations, secure external funding for its operations and manage its liquidity needs; (v) material adverse change in customers' access to liquidity and capital; (vi) currency exchange or interest rates changes; (vii) political stability; (viii) market acceptance of the company's products and services; (ix) significant changes in the competitive environment; (x) epidemic diseases; (xi) severe change in weather conditions negatively impacting operations; (xii) changes in law, regulations and tax rates; and (xiii) other general economic, business and financing conditions and factors described in more detail in "Item 1A - Risk Factors" in Part II of our Form 10-Q filed with the SEC on October 30, 2009 for the 3rd quarter of 2009. This filing is available on our website at www.cat.com/sec_filings. We do not undertake to update our forward-looking statements.
SOURCE Caterpillar Inc.