Cat Logistics Opens New Logistics Center To Support Growth In China

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13th October 2010, 10:55am - Views: 1291






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MEDIA RELEASE PR41539

Cat Logistics Opens New Logistics Center to Support Growth in China


PEORIA, Ill., Oct. 13 /PRNewswire-AsiaNet/ --


     New facility will service a growing presence in the region and provide

             increased utilization of strategic sourcing initiatives


    Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly owned

subsidiary of Caterpillar Inc. (NYSE: CAT), today announced the opening of a

new Logistics Center in Suzhou, China. The new center provides inbound

logistics support for Caterpillar's growing manufacturing footprint in China

and for other Caterpillar manufacturing operations in the Asia-Pacific

region. In addition, the Logistics Center serves as a consolidation /

deconsolidation hub for the movement of goods in and out of China, supporting

the manufacturing of Cat products globally. 


    The new 9,000 square-meter facility, known as the China Logistics Center (CLC), is located in the Suzhou

Industrial Park (SIP) and employs approximately 50 full-time employees. In addition to providing inbound

logistics support to Caterpillar's China and inter-Asia manufacturing facilities, services also include bonded

and non-bonded warehousing support and distribution and line side replenishment.


    "Caterpillar has worked hard with many local partners in Suzhou,

including members of the Suzhou Industrial Park, and we thank them for their

assistance during the site selection and fit-out," said Steve Larson,

Caterpillar vice president with responsibility for Parts Distribution and

Logistics, chairman and president of Caterpillar Logistics Services, Inc.

"This new facility has an important role in ensuring the success of

Caterpillar's growing presence in China and will enhance supply chain and

operational efficiency in our manufacturing operations in the region,"

continued Larson.


    The China Logistics Center is applying the Caterpillar Production System

(CPS) to deliver efficiencies throughout the new facility. "By utilizing CPS

Guiding Principles, we'll drive velocity and increase inventory turns while

providing world-class material availability to our manufacturing facilities

in Asia," said Ed O'Neil, vice president of Manufacturing Logistics Services

for Cat Logistics.


    This move is another element of Caterpillar's long-term strategy to

increase its capability in China and greater Asia. "Caterpillar has a long

history in China, and we're committed to continued growth in the region. The

China Logistics Center represents an important piece of our overall strategy

in China," said Jiming Zhu, Caterpillar vice president with responsibility

for the China Division.


    About Caterpillar:

    For more than 85 years, Caterpillar Inc. has been making progress

possible and driving positive and sustainable change on every continent. With

2009 sales and revenues of $32.396 billion, Caterpillar is the world's

leading manufacturer of construction and mining equipment, diesel and natural

gas engines and industrial gas turbines. The company also is a leading

services provider through Caterpillar Financial Services, Caterpillar

Remanufacturing Services, Caterpillar Logistics Services and Progress Rail



    About Cat Logistics:

    Caterpillar Logistics Services, Inc. is the low-cost provider of

differentiated supply chain solutions delivering competitive advantage and

attractive returns for its parent company, Caterpillar Inc., and more than 60

other leading corporations throughout the world. Headquartered in Morton,

Illinois, Cat Logistics operates more than 108 offices and facilities in 23

countries on six continents. Cat Logistics provides its full service

capabilities to companies in market sectors, which include automotive,

industrial and aerospace service parts, consumer durables, technology,

electronics and manufacturing logistics. More information is available at



    Forward-Looking Statements

    Certain statements in this press release relate to future events and

expectations and, as such, constitute forward-looking statements within the

meaning of the Private Securities Litigation Reform Act of 1995. These

statements are subject to known and unknown factors that may cause actual

results of Caterpillar Inc. to be different from those expressed or implied

in the forward-looking statements. Words such as "believe," "estimate," "will

be," "will," "would," "expect," "anticipate," "plan," "project," "intend,"

"could," "should" or other similar words or expressions often identify

forward-looking statements. All statements other than statements of

historical fact are forward-looking statements, including, without

limitation, statements regarding our outlook, projections, forecasts or trend

descriptions. These statements do not guarantee future performance, and

Caterpillar does not undertake to update its forward-looking statements.


    It is important to note that actual results of the company may differ

materially from those described or implied in such forward-looking statements

based on a number of factors, including, but not limited to: (i) economic

volatility in the global economy generally and in capital and credit markets;

(ii) Caterpillar's ability to generate cash from operations, secure external

funding for operations and manage liquidity needs; (iii) adverse changes in

the economic conditions of the industries or markets Caterpillar serves; (iv)

government regulations or policies, including those affecting interest rates,

liquidity, access to capital and government spending on infrastructure

development; (v) commodity price increases and/or limited availability of raw

materials and component products, including steel; (vi) compliance costs

associated with environmental laws and regulations; (vii) Caterpillar's and

Cat Financial's ability to maintain their respective credit ratings, material

increases in either company's cost of borrowing or an inability of either

company to access capital markets; (viii) financial condition and credit

worthiness of Cat Financial's customers; (ix) material adverse changes in our

customers' access to liquidity and capital; (x) market acceptance of

Caterpillar's products and services; (xi) effects of changes in the

competitive environment, which may include decreased market share, lack of

acceptance of price increases, and/or negative changes to our geographic and

product mix of sales; (xii) Caterpillar's ability to successfully implement

Caterpillar Production System or other productivity initiatives; (xiii)

international trade and investment policies, such as import quotas, capital

controls or tariffs; (xiv) failure of Caterpillar or Cat Financial to comply

with financial covenants in their respective credit facilities; (xv) adverse

changes in sourcing practices for our dealers or original equipment

manufacturers; (xvi) additional tax expense or exposure; (xvii) political and

economic risks associated with our global operations, including changes in

laws, regulations or government policies, currency restrictions, restrictions

on repatriation of earnings, burdensome tariffs or quotas, national and

international conflict, including terrorist acts and political and economic

instability or civil unrest in the countries in which Caterpillar operates;

(xviii) currency fluctuations, particularly increases and decreases in the

U.S. dollar against other currencies; (xix) increased payment obligations

under our pension plans; (xx) inability to successfully integrate and realize

expected benefits from acquisitions; (xxi) significant legal proceedings,

claims, lawsuits or investigations; (xxii) imposition of significant costs or

restrictions due to the enactment and implementation of health care reform

legislation and proposed financial regulation legislation; (xxiii) changes in

accounting standards or adoption of new accounting standards; (xxiv) adverse

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effects of natural disasters; and (xxv) other factors described in more

detail under "Item 1A. Risk Factors" in Part I of our Form 10-K filed with

the SEC on February 19, 2010 for the year ended December 31, 2009 and in Part

II of our Form 10-Q filed with the SEC on May 3, 2010 for the quarter ended

March 31, 2010. These filings are available on our website at



    SOURCE:  Caterpillar Inc.


    CONTACT: China

             Crystal Sui of Caterpillar China

             +86-10-5921-0581

             Sui_Crystal@cat.com


             or North America

             Bridget M. Young

             Corporate Public Affairs of Caterpillar Inc.

             +1-309-675-8463

             Young_Bridget_M@cat.com


             or Linda Fairbanks of Cat Logistics Media Relations

             +1-309-266-4602

             Fairbanks_Linda_S@cat.com



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