“As competition intensifies, Chinese companies are offering customers “wildly crazy, very attractive financing,” said Phillips, who has been with Off-Highway for more than 30 years.”
And still no word from our “job creators”? Is that because they don’t exists?
Caterpillar Inc, Komatsu Ltd and other construction-equipment makers have built enough capacity in China to satisfy global demand twice over while sales in the country are falling, according to a research company.
Manufacturing capacity in China is almost 600,000 excavators a year while the worldwide market is about 300,000, according to London-based Off-Highway Research. Inventories of crawler excavators in China are about 100,000, almost equal to projected 2012 domestic sales, the research firm’s Managing Director David C.A. Phillips said.
The supply glut is a blow to Peoria, Illinois-based Caterpillar and its competitors who built factories and bought local companies to grab a share of the biggest construction equipment market. Now, with government property controls slowing construction, those companies are cutting output and trying to export unsold equipment.
“It’s all very scary,” Phillips, who visited China in November, said in an Dec. 12 interview.
Demand growth in China was as high…
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