1,000th Mobile Hydraulic Power Unit rolls off Caterpillar Xuzhou Limited (CXL) assembly line

On February 16, the 1,000^th Mobile Hydraulic Power Unit (MHPU) rolled off the assembly line at Caterpillar Xuzhou Limited (CXL) in Xuzhou, China. Employees from the OEM Solutions Group (OEMSG) along with employees from CXL’s operation lines, supply chain, purchasing, engineering and other related departments marked the milestone with a celebration.

An MHPU is based on the Cat hydraulic excavator product line and is a platform that original equipment manufacturers (OEMs) rely upon as the base for their specialized machine applications, such as foundation drills (used for constructing bridges, overpasses, railroads, etc.), heavy-duty material handling (for example: unloading barges) and ground preparation (ensures the ground is solid and stable prior to building). OEMs purchase MHPUs from Caterpillar and then customize the machine with their own attachments.

The business for this product line developed in EAME in the mid 1990s and focused on foundation drills and material handling, but the foundation drill market in China began a period of rapid growth in 2003 and has boomed in recent years. Currently, this market is heavily driven by China’s rail industry, and sales are expected to be strong over the next several years.

But why is CXL, which is part of the Excavation Division, so important to Caterpillar reaching this market?

Before 2007, OEMSG had to import MHPUs into Asia Pacific from overseas, which caused high cost and long lead time and led to low customer satisfaction. But this trend reversed when CXL began manufacturing MHPUs in 2007.

Now, more than 70 percent of MHPUs produced by Caterpillar for the Chinese and broader Asia Pacific markets are manufactured at CXL. And by 2013, this facility will be OEM Solutions’ largest supply base for MHPU products.

In addition to CXL, Caterpillar manufactures MHPUs at four other facilities around the world:

• Gosselies, Belgium
• Aurora, Illinois, USA
• Akashi, Japan
• São Paulo, Brazil
  
  

Currently, about 55 percent of production is focused in Asia Pacific, 35 percent in EAME and about 10 percent in the Americas.

“I want to thank everyone for their hard work and contributions that helped us achieve this milestone,” said Scott Knuppe, CXL Operations Manager. “The OEM machine business is a very important part of CXL’s overall business.”

“This is a great accomplishment, but I’m looking forward to the celebration of our 2,000^th and 3,000^th machines!” added Steve Chang, OEMSG Asia Pacific Region Manager.

“The MHPU is another example of the OEM Solutions team finding markets for partial Cat machines, which are incorporated into finished products manufactured by other companies," said Chris Chadwick, General Manager of the OEM Solutions Group. "In the case of foundation drills, this is worldwide product opportunity with customers in Asia, Europe and the Americas. I would like to personally thank the team at CXL and the entire Excavation Division for their commitment to this product line and the customers it serves around the world. Through their dedication, Caterpillar is able to capitalize on a tremendous market opportunity that should continue to be strong for years to come.”