BEIJING, Jan. 27 -- U.S. Caterpillar Inc. announced the selection of the city of Qingdao in Shandong Province as the location for an innovation center for product and process development in China.

    This commitment will provide a focal point for product development and will accelerate the introduction of Caterpillar technology into its design and production processes in China.

    The announcement of this planned investment is the latest step in a multiyear strategy introduced by Caterpillar in 2003 to significantly expand its presence in China. The center will be managed and wholly owned by Caterpillar.

    The center will support several China based ventures in the future including Shandong SEM Machinery Co. Ltd., one of China¡¯s key wheel loader manufacturers. Caterpillar previously announced the signing of definitive agreements to acquire a minority interest in SEM.

    ¡°These proposed investments demonstrate our confidence in China¡¯s future,¡± said Caterpillar¡¯s Asia Pacific Operations vice president Rich Lavin when he made the announcement with Shandong Provincial Government officials.

    (Source: Shenzhen Daily/Agencies)