Caterpillar completes tender offer for ERA, subsidiary

By WEEK Reporter

Caterpillar completes tender offer for ERA, subsidiary

June 7, 2012 Updated Jun 7, 2012 at 9:39 AM CDT

HONG KONG -- Caterpillar announced Wednesday the completion of its tender offer for ERA Mining Machinery Limited, including its wholly-owned subsidiary Zhengzhou Siwei Mechanical & Electrical Manufacturing Co., Ltd.

ERA primarily designs, manufactures, sells and supports underground coal mining equipment in mainland China through Siwei, a stand alone company known for its expertise in producing mining roof support equipment and its focus on customer relationships.

"Siwei is an outstanding company with excellent people and great products in an industry that will continue to grow as the world population increases and mass urbanization drives a greater need for commodities," said Steve Wunning, Caterpillar group president with responsibility for Resource Industries.

This acquisition in part of Caterpillar's strategy to expand its leadership in the Chinese coal mining industry and positions the company to capitalize on the robust long-term outlook for coal production in China. 

China currently produces half of the world's coal and is forecasted to grow over the next several years.

The Siwei brand will continue and be a part of Caterpillar Global Mining.