Shandong Engineering Machinery (SEM) Changes its Name to Caterpillar (Qingzhou) Ltd.

March 24, 2014

Both lifecycle Cat machines and utility SEM-branded products will be manufactured to support customers in China and other growth markets

QINGZHOU, Shandong Province, People’s Republic of China (PRC) – In support of Caterpillar’s strategy of providing the best value to customers and continuing to build out its business model in China, Shandong Engineering Machinery (SEM) has changed its name to Caterpillar (Qingzhou) Ltd. A grand opening ceremony was held today with the attendance of senior Caterpillar leaders and
representatives of local government. This step underscores Caterpillar’s expanded efforts of transforming the Qingzhou facility to becoming a leading provider of a wide range of construction equipment.



In conjunction with the grand opening ceremony, Caterpillar (Qingzhou) Ltd. introduced Cat 950GC Wheel Loaders and also announced the opening of a new facility designed to manufacture SEM-branded track-type Tractors, which will begin production this month.

"The name change reflects our commitment of long-term development in China and Asia in anticipation of the tremendous growth opportunities primarily driven by infrastructure needs,” said Caterpillar Group President Ed Rapp with responsibility for Construction Industries. “The two brands of Cat and SEM with differentiated value propositions will enable Caterpillar to better serve our customers across the span of a very competitive construction equipment industry.”



Since forming the SEM joint venture in 2005 and the subsequent full acquisition in 2008, Caterpillar has invested significant resources to develop SEM-branded Wheel Loaders with improved product quality and reliability, and expanded the product line to include SEM motor Graders, soil Compactors and track-type Tractors. In addition, management expertise and manufacturing system and technology improvements have also been introduced to improve the operation of the Qingzhou facility.



"With the introduction of Cat 950GC Wheel Loaders, the Qingzhou facility demonstrated its commitment to building the highest quality Caterpillar machines with engineering and quality specifications reaching Caterpillar’s global standards,” said Karl Weiss, Caterpillar vice president with responsibility for the Earthmoving Division. “At the same time, as a strategic utility brand, SEM is an important element of Caterpillar’s brand portfolio in China as well as for other emerging growth markets.”

The Cat 950GC wheel loader is the first Caterpillar model manufactured at Caterpillar Qingzhou and is designed specifically for Chinese customers and for customers in other regions with similar buying criteria.

"All of these milestones represent the strength of Caterpillar development in China, and Caterpillar Qingzhou will play an integral role in successfully implementing our strategy to win in China,” said Qihua Chen, Caterpillar vice president with responsibility for China Operations and China country manager. “We are committed to building out our end-to-end business model in China to enable customer success."