Caterpillar Inc. announced today it has entered into an agreement to acquire JCS Co., Ltd., a subsidiary of Jinsung T.E.C. Co., Ltd., a South Korea-based manufacturer that specialises in producing undercarriage components for earthmoving and other off-road machinery.

The acquisition builds on an existing relationship between Caterpillar and Jinsung T.E.C.

"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," said David Bozeman, Caterpillar Vice President with responsibility for undercarriage production. "This strategic acquisition will improve Caterpillar's supply chain and component capacity in support of Caterpillar's long-term machine capacity expansion plans in Asia."

Jinsung currently supplies Caterpillar with rollers, idlers and metal-faced seals used on a wide range of Caterpillar machines.

The acquisition of JCS will provide Caterpillar with proprietary technology to competitively produce highly engineered seals that will improve machine undercarriage reliability and durability.

"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," added Rich Lavin, Caterpillar Group President with responsibility for Asia Pacific.

The JCS seal manufacturing facility will be the first factory for Caterpillar in South Korea. It will complement Caterpillar's existing footprint in Asia Pacific, which includes manufacturing facilities in China, India, Indonesia and Australia.

SOURCE: www.cat.com

Edited by Chris Farnell