Mitsubishi Heavy Industries Ltd. (MHI) and Caterpillar Inc. have agreed to expand operations of their joint venture Shin Caterpillar Mitsubishi Ltd (SCM). SCM is a 40-year-old joint venture company in Tokyo, Japan, equally owned by MHI and Caterpillar.
Glen Barton, chairman and CEO of Caterpillar, and Takashi Nishioka, president of MHI, signed the memorandum of understanding.
The new agreement allows SCM, which currently supplies construction equipment to Caterpillar from Japan, to expand its business as a partner of Caterpillar in the Asian region. Specifically, the agreement allows SCM to invest in existing Caterpillar manufacturing facilities in China, India and Indonesia. SCM and Caterpillar will collaborate and leverage both companies' manufacturing technologies and accumulated know-how to support Caterpillar's business expansion plans in Asia. SCM also will proactively participate in the development of new products that target the Asian region.
"As a supplier of Caterpillar products for Asia and the world, SCM has long excelled in manufacturing superior quality products at very competitive costs," Barton said. "Caterpillar and SCM collaboration on product development through the Hydraulic Excavator Development Center located in Akashi, Japan, has made Caterpillar the global leader in this important product line. Under this agreement, SCM's expertise and active involvement will help accelerate Caterpillar's rapid growth in Asia."
The new agreement also will enable SCM to expand its opportunities to supply major components to Caterpillar's manufacturing facilities in the region, provide the opportunity to procure cost-competitive parts from outside Japan and more effectively utilize SCM-owned technologies.
