Sglogo_1

 

Events Reports Directory Forum Job Post Resume Post Links Currency Archive Metal Rate Archive Glossary Import Duty Structure Incoterms 2000 Technical Info Currency Codes Contact Us Disclaimer Feedback Privacy Policy Site Map

 

FAIL (the browser should render some flash content, not this).

July 25, 2008


Caterpillar, Mitsubishi Heavy, Shin Caterpillar announce JV

Caterpillar, Mitsubishi Heavy Industries and Shin Caterpillar Mitsubishi have announced a definitive agreement for their JV in Japan. Under the share redemption plan, Caterpillar would become the majority shareholder in Shin Caterpillar Mitsubishi Ltd with an option to reach full ownership after five years.

Definitive agreements include a share redemption plan which will result in Caterpillar owning 67% of Shin Caterpillar Mitsubishi. The business will be renamed Caterpillar Japan when the first phase of the deal closes, expected to be in the third quarter of 2008.

The estimated value of the first phase of the share redemption is JPY 50 billion. Under the terms of the agreement, Shin Caterpillar Mitsubishi will redeem half of MHI's shares in Shin Caterpillar Mitsubishi. Once the share redemption is completed, Caterpillar will own 67% of the outstanding shares of the business and MHI will own the remaining 33%. Shin Caterpillar Mitsubishi also has an option, exercisable after five years, to redeem the remaining shares owned by MHI, which if exercised, would make Caterpillar the sole owner of Shin Caterpillar Mitsubishi.

Mr Jim Owens chairman & CEO of Caterpillar said that "This is a strategic decision for Caterpillar and it is an important part of our comprehensive business strategy for competing and winning in the rapidly expanding emerging markets of Asia and the Commonwealth of Independent States. Our joint venture with Mitsubishi Heavy Industries has been remarkably successful, and moving forward, I'm confident that as SCM is fully integrated with Caterpillar's core operations, our customers will see greater benefits from this agreement.”

Shin Caterpillar Mitsubishi is primarily involved in the manufacture and sale of Caterpillar branded hydraulic excavators, wheel loaders and track type tractors. Shin Caterpillar Mitsubishi also owns several retail and rental stores that provide Caterpillar products and services in key markets in Japan. Shin Caterpillar Mitsubishi production facilities in Akashi and Sagami are major manufacturing centers, providing Caterpillar products to Asia and the world. In addition, Shin Caterpillar Mitsubishi's hydraulic excavator development center in Akashi is the global home for the development of Caterpillar's hydraulic excavator product line.