Caterpillar, ITOCHU Corporation and SNT Corporation Announce Intention to Form Undercarriage Enterprise in China

16 September 1997

    TIANJIN, China, Sept. 15 -- In a signing ceremony,
Caterpillar Inc. , ITOCHU Corporation and SNT Corporation announced
they are forming a wholly foreign-owned enterprise, AsiaTrak (Tianjin) Ltd, to
manufacture, assemble and market undercarriage in Tianjin, China.
    Caterpillar will provide product design, manufacturing technology,
machines and equipment, key personnel and employee training to the enterprise.
SNT will provide world-class quality forgings and technology.  ITOCHU will
provide marketing and logistics services to regional customers.
    "This enterprise further demonstrates Caterpillar's commitment to the
Chinese market and its growing need for high-quality undercarriage and related
components," said Sig Ramseyer, Caterpillar vice president with responsibility
for the Asia/Pacific region.  "We're particularly pleased to join ITOCHU
and SNT, industry leaders in Japan, to provide this important product to the
Chinese market."
    The undercarriage will be used for agricultural, construction, mining and
industrial equipment.  Facilities will be located in the Tianjin Port Free
Trade Zone, about 150 kilometers southeast of Beijing.
    ITOCHU Corporation, based in Minato-Ku, Tokyo, Japan, a leading
international trading company, is one of the largest corporations in the
world.  Its eight business division companies handle up to 30,000 products and
services.  The company has more than 200 offices in 90 countries and has a
network of more than 1,000 subsidiary and associated companies.  Its 1996
sales were greater than U.S. $123 billion.
    SNT Corporation, based in Takahagi-City, Ibaraki-Prefecture, Japan,
manufactures forgings and construction and distribution equipment.
Established in 1948, it is recognized for its first-class quality forging
production technology.  Its primary customers are major automobile and
construction equipment manufacturers.  Sales in 1996 were U.S. $114.2 million.
    Caterpillar Inc. is the world's largest manufacturer of construction and
mining equipment, natural gas engines and industrial gas turbines.  It is also
a leading global manufacturer of diesel engines.  Sales and revenues in 1996
exceeded U.S. $16.5 billion.

SOURCE  Caterpillar