Caterpillar, Inc. - ITA Success Story

Energizing Exports - U.S. Firm Supplies Power Equipment to China

The Company

Headquartered in Peoria, Ill., Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

The Business Challenge

In late 2005, Caterpillar began looking to make a bid to supply power generation equipment for the world’s largest power plant fueled by coal mine methane. The Jincheng Coal Mine Methane Development Project in China was attracting strong interest from overseas competitors, and Caterpillar wanted to ensure that it would be competing on an equal footing with their international competitors.

The Solution

To increase its chances of winning the bid, Caterpillar contacted the U.S. Commercial Service’s Advocacy Center. Through our early project development initiative, they received key information on the Asian Development Bank (ADB) tender at the earliest stages possible. The center also coordinated closely with the ADB on project financing issues, tapped the services of the U.S. Trade and Development Agency and collaborated with Commercial Service officials in Beijing, who met with key Chinese officials on the company’s behalf.

The Result

Caterpillar came to the bidding process well prepared and won the contract from China for the project, which will support many new jobs in the United States.

“Without the resources of the U.S. government, the likelihood of success would have been greatly diminished. This is a great example of how having U.S. government backing for a project can bring additional credibility to the process when convincing potential buyers such as the Chinese to award a bid.”

Jack Gehring, Director of International Service Division, Caterpillar Inc