Caterpillar Marine Power Systems Posts Record Sales to Chinese Yards

For worldwide release: November 27, 2007

Release Number: M10PR07

Hamburg, Germany – Marintec China 2007 will probably set another record in visitor attendance and Caterpillar Marine Power Systems (CMPS) is looking forward to presenting its portfolio of products and services to experts from around the world. Even ahead of the exhibition, CMPS has notched up record sales to shipyards in China.

Most of the shipbuilding business in China is still fuelled by European shipowners and their ongoing investment in fleet expansion. Caterpillar Marine Asia Pacific has utilised strong recognition of the MaK brand in both Europe and China to design MaK propulsion into many series of container feeders, cargo vessels, bulkers and tankers currently on order at, or recently delivered from, Chinese shipyards. The order book has reached an all-time high with about 250 MaK engines for delivery to customers in and after 2008.

Out of the multitude of projects underway with well-know shipyards in China, some recent vessel series using MaK main propulsion are worth highlighting:

1. 700 TEU Container Feeder at Zhejiang Yangfan Ship Group 
    MaK 7 M 43 C, 29 vessels

2. 700 TEU Container Feeder at Mawei Shipbuilding
     MaK 8 M 43 C, 30 vessels

3. 880 TEU Container Feeder at Mawei Shipbuilding
     MaK 9 M 43 C main propulsion, 20 vessels

4. 7,600 DWT Multi Purpose Cargo Vessel at Jiangsu Yangzijiang Shipyard
     MaK 6 M 32 C main propulsion complete with gearbox and CPP, 27 vessels

5. 12,600 DWT Multi Purpose Cargo Vessel at Jiangsu Yangzijiang Shipyard
     MaK 6 M 43 C main propulsion complete with gearbox and CPP, 10 vessels

6. 5,500 DWT Chemical Tanker at Chongqing Dongfeng Shipbuilding Corporation
     MaK 9 M 25 main propulsion, 12 vessels

7. 5,500 DWT Chemical Tanker at Zhenjiang Sopo Shipbuilding
     MaK 9 M 25 main propulsion, 16 vessels

8. 7,000 DWT Chemical Tanker at Ningbo Xinle Shipbuilding
     MaK 9 M 25 main propulsion, 7 vessels

9. 9,500 DWT Chemical Tanker at China Dong Fang Shipbuilding
     MaK 9 M 25 main propulsion, 20 vessels

10. 16,500 DWT Chemical Tanker at Liaoning Hongguan Shipbuilding & Zhejiang Yangfan 
       MaK 7 M 43 C main propulsion complete with gearbox and CPP, 16 vessels

11. 19,000 DWT Chemical Tanker at Zhejiang Hongguan Shipbuilding
        MaK 7 M 43 C main propulsion complete with gearbox and CPP, 8 vessels

12. 8,500 DWT Bulker at Wenling Longda Shipyard 
      MaK 9 M 25 main propulsion, 15 vessels

13. 12,000 DWT Bulker at Taizhou Sanfu Shipyard & Qinshan Shipyard & Jiangdong Shipyard & Jiangzhou Shipyard
       MaK 6 M 43 C main propulsion, 73 vessels

With domestic MaK manufacturing capability available at the Caterpillar Motoren Guangdong facility, investment being made in key component supply and new products like the MaK M 25 C marine engine to be introduced, the CMPS boom with customers in China is likely to continue. In addition to ocean-going business, the market for offshore supply vessels is also strong, providing additional sales opportunities especially for MaK M 32 C series engines.

Since its initiation in 1989, today’s Caterpillar Marine Asia Pacific has seen tremendous development take place. Managing Director Florian Gruber and his team serve the fast-growing marine markets in China, India, Korea, Vietnam, Indonesia, Singapore, Malaysia and Australia – to name but a few. In close cooperation with Caterpillar’s dealer network, the organisation now benefits from well-established business ties with domestic shipyards, shipping companies, governmental organisations and pleasure craft manufacturers. Following the move to the new Caterpillar Marine Center building at Shanghai’s Yan’an West Road earlier this year, Caterpillar Marine Asia Pacific has reinforced its marine expertise, strategically located in China’s major business hub.

Michael Petersen, Sales Manager MaK, Caterpillar Marine Asia Pacific, Shanghai, said:  “Quite apart from the great acceptance the MaK brand has won with European operators, domestic yards and owners in China are increasingly trusting in the reliability and durability of MaK product. MaK product also has the potential to keep abreast of the rapid development of Chinese maritime business, seamlessly evolving into ever-more sophisticated marine propulsion solutions!”

About Caterpillar Marine Power Systems
Caterpillar Marine Power Systems, with headquarters in Hamburg, Germany, brings together all the sales and service activities for Cat and MaK branded marine products within Caterpillar Inc. This organization provides premier marine power solutions (high and medium speed with outputs from 11 kW to 16,000 kW) and customer service from a single source for the global ocean-going, commercial and pleasure craft markets. The Caterpillar Marine Power Systems sales and service network includes more than 2,100 dealer locations world-wide and is well positioned to support customers wherever they are.

More information is available at www.cat-marine.com or www.mak-global.com.

About Caterpillar
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2006 sales and revenues of $41.517 billion, Caterpillar is a technology leader and the world’s leading manufacturer of construction and mining equipment, clean diesel and natural gas engines and industrial gas turbines.

More information is available at www.cat.com.

CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the POWER EDGE trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. .

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