Caterpillar and China’s National Development and Reform Commission (NDRC) have signed a letter of intent through which Caterpillar and NDRC will promote the development of China’s remanufacturing industry. Caterpillar Group President Stu Levenick and NDRC Resources Conservation & Environmental Protection Department Director General Madame Zhao Jia Rong signed the letter of intent.
“Remanufacturing is a highly sophisticated form of recycling that takes end-of-life components and turns them into like-new products for a fraction of the cost,” said Levenick. “Our remanufacturing business is one of the fastest growing parts of our company because this technology helps our customers remain competitive and promotes a sustainable environment by reducing waste and the need for raw materials to make new parts.”
Zhao Jia Rong said, “The letter of intent signing lays a solid foundation to promote co-operation in the area of remanufacturing. It is beneficial for China to learn the expertise of foreign countries and to promote the development of the recycling economy.”
As part of the letter of intent, Caterpillar will provide expertise to assist NDRC and Chinese research institutions in supporting the development of the remanufacturing industry in China. Caterpillar and NDRC have also agreed to form a Joint Working Group on Remanufacturing Programmes to discuss matters related to the remanufacturing cooperation program in detail and to coordinate and promote further cooperation by both parties in sustainable manufacturing and other areas. Caterpillar Remanufacturing Services is the first wholly owned foreign entity to receive a remanufacturing license in China. To support its Chinese customers, dealers and other customers in the Asia Pacific region, Caterpillar recently opened a regional remanufacturing center in the Lingang Industrial Area in Shanghai.
“We are proud to be a pioneer in this industry and look forward to supporting China’s 4R initiative: reduce, reuse, recycle and remanufacture,” said Steve Fisher, Caterpillar Vice President for Remanufacturing. “Through our business model and with this letter of intent, Caterpillar will support the Chinese government’s goal of achieving a sustainable economy based through recycling.” With more than 30 years of experience, Caterpillar is a global leader in remanufacturing technology. In 2005, customers from around the world returned 61.2 Mkg of components to Caterpillar Remanufacturing Services. Close to 70% of those 2.2 million end-of-life units were remanufactured to produce Cat Reman products, with the remaining percentage recycled.
For the sixth consecutive year, Caterpillar has been selected as a member of the Dow Jones Sustainability World Index (DJSI World). DJSI uses a best-in-class approach designed to identify best practices across the economic, social and environmental dimensions of corporate sustainability.
“This is truly an honor. Not only are we excited to be recognized for our strong focus on sustainability, but this year Caterpillar also proudly leads our sector with the best overall score among industrial engineering companies,” said Ali M. Bahaj, Caterpillar Chief Ethics and Compliance Officer with responsibility for the company’s sustainable development initiatives and environmental, health and safety performance.
For each industry, the DJSI creates specific questions to reflect unique sustainability challenges. Each of the Dow’s 2,500 companies was invited to take part in the comprehensive assessment, and only 318 companies met the standards for listing on the DJSI World.
Launched in 1999, the DJSI World is the first global index to track with an external auditor the financial performance of the leading sustainability-driven companies worldwide. Research for the DJSI World is conducted by the SAM Group, an independent asset management company specializing in sustainability investments. “Caterpillar continues to be a leader in the social dimension with strong, consistent scores related to hiring, retaining, and developing its employees. Other areas of strength include strong risk management and superior product stewardship,” said Carl-Johan Francke, equity analyst with the SAM Group.
