aterpillar, an American heavy machinery manufacturer, said recently that China's construction machinery industry will continue to show a good development trend thanks to the steady growth of China's economy and the continuous promotion of supply side structural reform.

Chen Qihua, global vice president of caterpillar and chairman of caterpillar (China) Investment Co., Ltd., said in an interview with reporters recently in Qingzhou, Shandong Province that the cyclical growth of China's market demand strongly supports caterpillar's global performance in the second quarter of this year, and this steady growth trend is expected to continue.

"On the whole, we can see that the (Chinese construction machinery) industry will still have a very good growth momentum in 2018." Chen Qihua said.

As one of the barometers of real economic development, China's construction machinery industry has maintained steady growth since this year. Taking excavators as an example, the data of mining machinery branch of China Construction Machinery Industry Association show that the sales volume of mining machinery products included in the statistics from January to July increased by 58.7% year-on-year.

Chen Qihua believes that China's stable economic growth, the promotion of supply side structural reform, positive fiscal policy, as well as the area of real estate newly started to maintain double-digit growth, and the stable prices of coal and steel, will promote the continuous growth of investment in mines, coal, real estate and infrastructure.

he picture shows the equipment of caterpillar brand mountain machinery produced by caterpillar (Qingzhou) Co., Ltd. The pictures were provided by the interviewees.

Although the measures taken by the government to clean up and regulate PPP projects and deleveraging will have a certain impact on the short-term growth of infrastructure investment, Chen Qihua believes that as an important part of the supply side structural reform, the growth of infrastructure construction is expected to stabilize this year. In the long run one sees the opportunity one belt, one road to the countryside and the western region to bring to the industry.

This year marks the 60th anniversary of caterpillar (Qingzhou) Co., Ltd. The company, formerly Shandong Shangong Machinery Co., Ltd., was fully acquired by caterpillar in 2008. Chen Qihua said that the subsidiary has become an important global manufacturing base of caterpillar, "demonstrating caterpillar's long-term investment commitment to China".

Frederick Eastar, Caterpillar's global vice president for Earthwork Products, calls the acquisition of mountain machinery a "win-win result.". On the one hand, caterpillar brought advanced process and quality control and management technology to Shangong machinery; on the other hand, Caterpillar also learned how to cooperate with Chinese suppliers and meet the needs of local customers.

"In the future, Caterpillar (Qingzhou) Co., Ltd. will continue to expand its production capacity, expand its product line supply and launch products with higher cost performance." Said ISTA.