Slump in Chinese economy means manufacturer is sending equipment to MENA region
A senior executive at Caterpillar has confirmed that the world’s largest manufacturer is sending Chinese-made machinery to the Middle East and Africa to maintain productivity at its China factories.
Richard Lavin told Reuters that the slump in the Chinese economy means that it is sending equipment to the Middle East and Africa to cover the drop in demand.
Reuters reported that: “Lavin has declined to name specific countries in the Middle East and Africa where the Chinese-made goods are headed, or list the amount of product, but noted front-end loaders and excavators comprise the bulk of exports”.
Lavin said: “The global economic situation, especially the situation in China, has presented us a short-term opportunity to serve very specific markets with some supplies over the last half of 2012,” he said. “But that is not part of overall strategy for China.”