South Korea-based seal manufacturer will support Caterpillar’s strategy for continued growth in key emerging markets in Asia Pacific region
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 specializes in producing undercarriage components for earthmoving and other off-road machinery. The acquisition builds on a strong, existing relationship between Caterpillar and Jinsung T.E.C. Currently Jinsung supplies Caterpillar with rollers, idlers and metal-faced seals used on a wide range of Caterpillar machines. The acquisition of JCS will provide Caterpillar proprietary technology to competitively produce highly engineered seals that will improve machine undercarriage reliability and durability.
“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.”
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.
“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,” said Rich Lavin, Caterpillar group president with responsibility for Asia Pacific.
The acquisition, which is subject to, among other things, regulatory approval, is expected to be finalized in early 2010.
For more than 30 years, Jinsung T.E.C. Co., Ltd. has specialized in the design and manufacture of heavy equipment spare parts including track rollers, seal groups and front idlers for excavators and bulldozers. A reputation for top quality, prompt and accurate deliveries at competitive prices have earned Jinsung T.E.C. favored supplier status with many world-renowned companies.
“As a supplier to Caterpillar for several years, we have built a strong relationship,” said Chairman, Mr. Woo-suk Yoon. “JCS, much like Caterpillar, is known for world-class technology, its commitment to quality and a strong customer focus. It will be an excellent complement to both businesses for JCS to become part of the Caterpillar family.”