Caterpillar Inc. announced in Beijing on Tuesday that it will move its Asia Pacific operations headquarters from Tokyo to Beijing.

Vice president for the firm's Asia Pacific division Rich Lavin, who has just relocated from Japan to Beijing, said the move to China was a clear indication of China's strategic importance to Caterpillar.

"Operational and sales success in China is a critical success factor for the company's long-term growth and profitability," he added.

As part of Caterpillar's Vision 2020 outlined last year, China has been listed as one of seven critical success factors needed for Caterpillar to achieve its new enterprise strategy and goals.

Lavin said global sales and revenue in 2006 was expected to hit 40 billion U.S. dollars, including one billion dollars in sales of equipment, engines and parts in the Chinese market, this year.

"We believe the share of the Chinese market will rise rapidly in coming years," said Lavin. Caterpillar would expand its manufacturing base and rapidly deploy its global business model to provide support to customers in this critical market as well as the Asia Pacific market.

Caterpillar sold its first products in China in 1975 and opened an office in Beijing in 1978.

It now has 13 China-based facilities -- both joint venture and wholly owned businesses -- which employ more than 5,000 people.

Lavin was elected as vice president of operations for the Asia Pacific division in 2004. He serves as chairman of Shin Caterpillar Mitsubishi Ltd. and has administrative responsibility for manufacturing operations in the region, including China, India, Indonesia and Japan.

Source: Xinhua