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
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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