Caterpillar Sun Xiaobo: Focus on the long-term potential of the Chinese market

As an important measure of global R&D, Caterpillar (China) R&D Center (Wuxi) completed and put into use all three phases. The original facility area of ​​the center is 13,000 square meters. After the completion of the project, the total area has reached 20,000 square meters, an increase of more than 50%.

In January of this year, Caterpillar signed an agreement with the Wuxi Municipal Government to expand the Caterpillar multi-functional R&D center. After less than six months of intense construction, the project was officially completed and put into use. After the project is put into use, the Caterpillar (China) R&D center will expand from the existing 600 engineers to more than 800 engineers, further enhancing Caterpillar's R&D capabilities in China.

The center has a number of engine test benches that can support the development of diesel engines with dozens to more than 3,000 horsepower. It also has a multi-functional integrated vehicle integration center, multiple fuel system laboratories, electrical and electronic laboratories, materials and chemical laboratories, tumbling protection laboratories, hydraulic system laboratories and advanced virtual simulation centers. Over the past two years, the center has completed the development of a series of engines and complete sets of domestic engines as well as the development of new engines and vehicles, which has contributed greatly to Caterpillar's business development in China.

The R&D center is located in Wuxi City, Jiangsu Province, adjacent to Caterpillar's Wuxi Parts Factory completed and put into production in 2006, Wuxi Engine Plant put into production in 2009, Suzhou Medium-sized Wheel Loader and Hexagonal Wheel Machine Manufacturing Plant completed and put into production in 2009, 2012 Wujiang Mini excavator manufacturing plant built and put into production, as well as Tongzhou large wheel loader manufacturing plant under construction and Asia-Pacific testing ground. So far, Caterpillar (China) R&D Center has a number of facilities such as office buildings, laboratory buildings, and virtual reality laboratories in Wuxi. It can develop components, engines, systems, and vehicles (machines).

After the ceremony to celebrate the completion and use of Caterpillar (China) R&D Center (Wuxi) in Phase III, the reporter interviewed Ms. Tana Utley, Caterpillar vice president and chief technology officer of Product Development and Global Technology Division, Caterpillar. Director of Product Development and Global Technology Division, Dr. Sun Xiaobo, Chairman of Caterpillar China R&D Center Co., Ltd.

Q: As a Caterpillar R&D executive, what do you think about the relationship between the Chinese market and R&D?

TanaUtley: China is one of the fastest growing markets in the world and has a more diversified demand for Caterpillar products. Corresponding to the important position of the Chinese market, Caterpillar (China) R & D center is the largest R & D center outside the United States, providing continuous technical support for China and even Asia as a whole.

Q: Why is Caterpillar's R&D project construction in China repeatedly investing in additional investment?

TanaUtley: The increase in investment is due to the growing customer base. Caterpillar must ensure the customer's needs and launch more projects. We have long-term plans for development, and we have a lot of investment in research and development of various products and also for the development of our customers. Because the current R&D work affects at least the next 1 to 3 years. When the economy improves, many new technologies will appear in our products.

Q: How is the Caterpillar (China) R&D center positioned?

TanaUtley: The main goal of the Wuxi R&D center is to serve the Asia Pacific market because China has the largest construction machinery market in the world. To ensure a sound research and development capability, and to request the establishment of R&D institutions and personnel training, Caterpillar is willing to invest in this area. In addition, other experts within the company come to train at the Wuxi R&D Center. This is also a common practice at Caterpillar Global, where exchanges and teamwork are one of its core values. We also help others succeed.

Q: Under the current circumstances, some people think that this is a contrarian expansion. Do you feel that there is a certain risk?

TanaUtley: The long-term economic development of China is also optimistic, including the mining industry. This is an overall forecast without having to dwell on small market changes. Caterpillar believes that as a global company, many markets can complement each other, and some markets will slow down. Some markets will be stable and they must make up for each other. We already have 18 plants in operation in China. There are also nine factories under construction that will continue to grow in the long term.

In addition, as a global company, research and development must also be globalized, and China is the largest market. Our efforts in the Chinese market have enabled the company to achieve overall success and have also made the global industrial chain grow healthily.