This strategic agreement builds on the relationship of almost two decades between Caterpillar and Shenhua Group.
Caterpillar Inc. and China Energy Investment Corporation Ltd. (China Energy) – both leaders in their industries – have signed a five-year strategic cooperative framework agreement. The signing was witnessed by Wang Yang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, and U.S. Secretary of Commerce Wilbur Ross.
China Energy is a newly formed state-owned enterprise created by a merger between China's major power generator China Guodian Corporation and coal producer Shenhua Group. This strategic agreement builds on the relationship of almost two decades between Caterpillar and Shenhua Group and outlines future agreements for mining equipment sales and rentals, technology applications and product support provided by both Caterpillar Inc. and local Cat dealers.
“With its outstanding products, services and solutions, Caterpillar has truly fulfilled our business needs,” said Li Dong, a senior executive from China Energy Investment Corporation Ltd. “The newly signed strategic agreement will further strengthen and expand our partnerships, and create value to further support our globalization endeavors.”
“The strategic agreement between Caterpillar and China Energy is based on the long-term relationship and mutual trust with predecessor company Shenhua,” said Qihua Chen, vice president of Caterpillar and chairman of Caterpillar China. “China Energy is an outstanding model of state-owned enterprises in China, and we look forward to jointly promoting the sustainable transformation of the coal industry in China.”
In support of strengthening and expanding the relationship between the U.S. and China, mining equipment supplied to China Energy for upcoming projects is expected to include products exported from the United States.
“Caterpillar solutions help our customers operate safely and efficiently, even in the most remote, rugged conditions,” said Denise Johnson, group president of Caterpillar Resource Industries. “We're proud to export, primarily from the U.S., a line-up of state-of-the-art mining equipment to Chinese customers like China Energy.”
Through products and solutions, as well as local dealer service, Caterpillar has supported China Energy's efforts to achieve efficient and more sustainable operations in both surface and underground coal mines in China, including Zhun Ge'er and Shen Dong. China Energy has also expanded into the international mining industry, with support from Caterpillar's global dealer network.