Caterpillar buys into South Korea

Caterpillar is to acquire JCS, a subsidiary of South Korea's Jinsung TEC. JCS manufactures undercarriage components for earthmoving and other off-highway equipment.

Jinsung was already a supplier of rollers, idlers and metal-faced seals to Caterpillar and the acquisition will provide the world's largest construction equipment manufacturer with the ability to competitively produce highly engineered seals to improve undercarriage reliability and durability.

Caterpillar vice president with responsibility for undercarriage production, David Bozeman said, "In recent years, Caterpillar has made significant investments in its emerging market operations in Asia Pacific to support a growing base of customers in the region.

"This strategic acquisition will improve Caterpillar's supply chain and component capacity in support of our long-term machine expansion plans in Asia."

A statement from Caterpillar said the acquisition is expected to be completed in early 2010 subject to regulatory approval.

Caterpillar group president with responsibility for Asia Pacific, Rich Lavin said, "As one of the largest economies in the world, and with a well developed and sophisticated base of suppliers, South Korea is growing in importance as a market for Caterpillar products and as a potential location for manufacturing in the region."