CAT Buys S. Korean Manufacturer

Caterpillar Inc., Peoria, IL, said it plans to buy JCS Co. Ltd., a subsidiary of Jinsung T.E.C. Co., a South Korean manufacturer of components for earthmoving and other machinery, Manufacturing.Net reports. The acquisition builds on a relationship between Caterpillar and Jinsung T.E.C., which supplies Caterpillar with equipment for its machines, the company said.

Jinsung T.E.C. Co. Ltd. specializes in the design and manufacture of heavy equipment spare parts, including track rollers, seal groups and front idlers for excavators and bulldozers. The transaction will give Caterpillar its first factory in South Korea. Caterpillar already has plants in China, India, Indonesia and Australia.

The company has said it’s counting on Asian customers to buy more of its mining and construction equipment next year to help the company move beyond the recession. This year, Caterpillar has laid off more than 22,000 workers as it dramatically scaled back production due to weaker demand because of the recession.