On June 28, manufacturer of construction and mining equipment Caterpillar announced that it has started the construction of a new manufacturing building for large excavators in Xuzhou, China, that will increase its capacity for the production of small and medium excavators.
With the completion of the expansion plans undertaken by Caterpillar Xuzhou Limited (CXL), a joint venture between Caterpillar and Xuzhou Construction Machinery Group (XCMG) that was initially established in 1995, Caterpillar will have increased its China-based excavator production capacity by 400 percent.
Caterpillar also announced that it has reached an agreement with XCMG to acquire XCMG's
15.87 percent ownership interest in CXL. When the deal has been completed, CXL will be a wholly-owned Caterpillar company. However, Caterpillar has not released the terms of the transaction, saying that the agreement is subject to Chinese regulatory approval.