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Chief executive Zhu Jiming contrarian bets on China - caterp

Creation:HOORAY Source:Hooray Machinery Release Time:2016-11-14 19:55

Abstract:As the end of 2009 the worlds second largest research and development center in wuxi, caterpillar global model to copy the layout of the basic perfect in China. This chain includes development, production and sales, finance and other aspects. Caterpillar
As the end of 2009 the world's second largest research and development center in wuxi, caterpillar global model to copy the layout of the basic perfect in China. This chain includes development, production and sales, finance and other aspects.

Caterpillar is the world's largest construction machinery manufacturers
Caterpillar is the world's largest construction machinery manufacturers, sales of about $35 billion in 2009

\"This is the copy caterpillar global economic model in China. So far, our layout in China it was basically perfect.\" When had an interview with our reporter, caterpillar's global vice President, says Zhu Jiming, chairman of the China investment corporation, \"according to the caterpillar management mode, only China, based on a single national geographic concept to set up the company. India has no, Russia.\"

The background is that, in 2009, caterpillar global revenues will only for $32 billion to $33 billion, compared to $20 billion off in 2008, \"this is equivalent to our revenue in 1927 to 1979, the total\". So, currently only for caterpillar 5% 7% income of the Chinese market, how much potential can play? It can become a new point of caterpillar?

Reporter: caterpillar established in wuxi, in addition to the United States the largest r&d center in China market for caterpillar, how important?


Zhu Jiming: in 2008, the Chinese market accounted for caterpillar's global operating income from 5% to 7%. But the caterpillar China is a very, very seriously. Last year, during the economic downturn, we froze the most investment projects, the only haven't freeze is China's investment projects, including research and development center of wuxi, as well as the engine company in wuxi. We regard China as an important market for a long time.

Reporter: caterpillar's basic judgment is the future of the Chinese market?


Zhu Jiming: according to judge the development trend of China now, the next 20 or even 30 years, China's two big trend, is the industrialization and urbanization, and the process is not slowing down. In the next five to ten years, the whole of China's infrastructure construction, railways, ports, airports, highways, momentum is very strong. The needs of mining, energy, but also will be very, very strong.

Reporter: we have noticed that the caterpillar more factories built on the Yangtze river delta region, is the focus of the Chinese market in the Yangtze river delta region?


Zhu Jiming: we have a series of site selection of consideration, including supply chain, transportation, personnel, import and export and the investment environment and so on three aspects. Why we have a lot of new investment, the last in the Yangtze river delta, this is because the traffic is developed Yangtze river delta, the supply chain is the most developed relatively. We also depends on the location, close to our market, closer to the production related resources.

Reporter: caterpillar after announced a global workforce, have cut 17900 jobs, the performance of caterpillar has what kind of impact? In addition, caterpillar, what other measures to tackle the financial storm?

Zhu Jiming: caterpillar's response to the financial storm, have a series of actions, the only one of layoffs. For example, we put the entire product inventory effectively converted into cash. Because the cause of the economic downturn, who will have inventory. We have no stock in China, however, to the end of the second quarter of this year, China's stock has been basically digestion is complete. Promote sales, effective arrangement of the supply chain, not when we don't need the parts to the company. In fact, it is a part of our biggest contribution to cut costs. Layoffs, actually is not the most important part.

Also, we have some of the projects should be built, but according to the market conditions, we choose to delay or dismount. This is a very effective means to cut costs and expenses.

These measures, to ensure the carter had never seen before in the history of the economic downturn, still can remain profitable. We forecast, caterpillar 2009 revenue of $32 billion to $33 billion.

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