By Scott Malone
CHICAGO (Reuters) - Record-high prices for oil and commodity metals are spurring strong infrastructure investment in Africa, Russia and Latin America, which are becoming important new markets for diversified U.S. manufacturers, top executives said this week.
That demand could help to offset any slowdown in the red-hot China market, particularly critical at a time when many multinationals are counting on growth abroad to offset the effects of a slowing U.S. economy.
"When people say emerging markets, they think India and China, like there were only two," said Jim Owens, chairman and chief executive of Caterpillar Inc (CAT.N: Quote, Profile, Research, Stock Buzz), at the Reuters Manufacturing Summit in Chicago this week.
But the world's largest maker of earth-moving equipment saw faster growth in its Europe, Middle East and Africa region last year.
"The southern cone of Africa, which has got great mining, is finally coming back," Owens said, adding that oil-driven investments in the Middle East and Eastern Europe is also driving strong growth. He noted that Russia over the past few years has become a $1 billion market for the company.
General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz), the second-largest U.S. company by market capitalization, also cited Africa as an important growth area.
"We have a number of business activities in Nigeria and Angola and are expanding our manufacturing capability in Angola, specifically in our oil and gas businesses," said John Rice, a GE vice chairman who serves as CEO of the company's infrastructure arm.
He also cited "South Africa, which we think over the next five or 10 years is going to be a very important country and a very important economy for us." Continued...
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