Caterpillar Tunneling Canada Corporation (CTCC) has entered into an agreement to sell substantially all of its assets (real estate, machinery, and intellectual property) to Liaoning Censcience Industry Co Ltd (LNSS). The transaction, subject to certain conditions, is anticipated to close in the third quarter of 2014 after the completion of CTCC’s final contracts for the supply of tunnel boring machines.
In May 2013, CTCC announced it would exit the tunnelling business and cease production at its facilities by mid-2014, as the company determined the business no longer represented a strategic growth opportunity.
“For the past year, LNSS has been a CTCC manufacturing partner for the sale of TBMs in China,” said Paul Clark, Caterpillar general manager with responsibility for tunneling. “Through this partnership, CTCC and LNSS collaborated to produce three Cat branded TBMs for use by customers in China. Given this relationship, this agreement was a natural next step for both sides.”
As previously announced, CTCC will continue to honor its existing contracts and obligations, including maintaining a support staff to provide parts and service support through 2016 for its customers.