China’s latest round of heavy infrastructure investment could be good for OEMs, according to CAT.
Blue skies for construction? Image: AGodschild
The Chinese government’s rapid urbanisation drive could create “tremendous opportunities” for OEMs, according to Doug Oberhelman, Chairman and CEO of Caterpillar.
Oberhelman’s optimism comes after the government released plans to step up infrastructure spending at a recent China Development Forum.
“At the forum, we saw very specific statistics on China’s future urbanisation,” said Oberhelman, although as growth is slowing, the chairman maintained the company was “prepared for any scenario".
Caterpillar operates 24 separate facilities in China, of which around two thirds are led by local Chinese leaders. The company’s global revenues based primarly on mechanical diggers and other construction equipment, increased by a respectable 10% year-on-year in 2012 to $65.9 billion, down from a 41% surge in revenues in 2011.