Caterpillar Helps Develop Remanufacturing Industry in China

Caterpillar Inc. and China's National Development and Reform Commission (NDRC) have signed a letter of intent through which Caterpillar and NDRC will promote the development of China's remanufacturing industry.

Caterpillar Group president Stu Levenick and NDRC Resources Conservation & Environmental Protection Department director general Zhao Jia Rong signed the letter of intent at a ceremony held last week at the Diaoyutai State Guesthouse in Beijing.

"Remanufacturing is a highly sophisticated form of recycling that takes end-of-life components and turns them into like-new products for a fraction of the cost," said Levenick. "Our remanufacturing business is one of the fastest growing parts of our company because this technology helps our customers remain competitive and promotes a sustainable environment by reducing waste and the need for raw materials to make new parts."

As part of the letter of intent, Caterpillar will provide expertise to assist NDRC and Chinese research institutions in supporting the development of the remanufacturing industry in China. Caterpillar and NDRC have also agreed to form a joint working group on remanufacturing programs to discuss matters related to the remanufacturing cooperation program in detail and to coordinate and promote further cooperation by both parties in sustainable manufacturing and other areas.

Caterpillar Remanufacturing Services is the first wholly owned foreign entity to receive a remanufacturing license in China. To support its Chinese customers, dealers and other customers in the Asia Pacific region, Caterpillar recently opened a regional remanufacturing center in the Lingang Industrial Area in Shanghai.

With more than 30 years of experience, Caterpillar is a global leader in remanufacturing technology. In 2005, customers from around the world returned 135 million pounds of components to Caterpillar Remanufacturing Services. Close to 70 percent of those 2.2 million end-of-life units were remanufactured to produce Cat Reman products, with the remaining percentage recycled.

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