Caterpillar Announces Expansion Plans for Remanufacturing Facility in West Fargo, ND to Support Mining Industry
WEST FARGO, N.D., Aug. 1, 2011 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) today announced plans to significantly expand its remanufacturing facility in West Fargo, North Dakota. The increased capacity will help meet the strong demand for remanufactured drive train components for large off-highway trucks and other mining equipment, including final drives, transmissions, torque convertors and steering clutches.
The $50 million investment will include a 225,000-square-foot addition that will house increased production capacity for high-tech machining and metal additive processes, as well as a state-of-the-art metallurgical lab. The expansion will also increase the facility's production of new and remanufactured piece parts and advanced wear coatings. Construction is expected to begin in August 2011, with operations commencing in June 2012. When the expansion is complete and fully operational, it is anticipated Caterpillar will add roughly 250 additional workers over a three-year period, bringing the total workforce to approximately 550 in West Fargo.
"This expansion will increase our capability to provide unmatched customer support to the mining industry," said Greg Folley, Caterpillar vice president with responsibility for the Remanufacturing & Components Division. "Remanufacturing is an attractive, growing and sustainable industry. Together with our remanufacturing facilities in Singapore and Shrewsbury, United Kingdom, we can now provide our mining customers drive train products with an unprecedented combination of availability, cost savings and support."
The Caterpillar Remanufacturing Operation returns end-of-life components to "same-as-when-new" condition in terms of reliability, durability and performance. Remanufacturing reduces waste, minimizes the need for raw materials to produce new parts and supports the Caterpillar value proposition of providing customers with the lowest life cycle cost over the life of a product.
"Our facility in West Fargo has been producing remanufactured components for the past 40 years, and now we're looking forward to the next chapter in our history," said Dan Walerius, Caterpillar West Fargo facility manager. "We appreciate the support we've received from the state of North Dakota, the city of West Fargo and the Greater Fargo/Moorhead Economic Development Corporation in making this vision a reality."
About Caterpillar:
For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at: http://www.caterpillar.com.
Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and are 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 Caterpillar's actual results 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 Caterpillar's actual results may differ materially from those described or implied in its forward-looking statements based on a number of factors, including, but not limited to: (i) global economic conditions and economic conditions in the industries and markets Caterpillar serves; (ii) government monetary or fiscal policies and government spending on infrastructure; (iii) commodity or component price increases and/or limited availability of raw materials and component products, including steel; (iv) Caterpillar's and its customers', dealers' and suppliers' ability to access and manage liquidity; (v) 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; (vi) 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; (vii) financial condition and credit worthiness of Cat Financial's customers; (viii) inability to realize expected benefits from acquisitions and divestitures, including the acquisition of Bucyrus International, Inc.; (ix) international trade and investment policies, such as import quotas, capital controls or tariffs; (x) the possibility that Caterpillar's introduction of Tier 4 emissions compliant machines and engines is not successful; (xi) market acceptance of Caterpillar's products and services; (xii) 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; (xiii) union disputes or other employee relations issues; (xiv) Caterpillar's ability to successfully implement the Caterpillar Production System or other productivity initiatives; (xv) adverse changes in sourcing practices of our dealers or original equipment manufacturers; (xvi) compliance costs associated with environmental laws and regulations; (xvii) alleged or actual violations of trade or anti-corruption laws and regulations; (xviii) additional tax expense or exposure; (xix) currency fluctuations, particularly increases and decreases in the U.S. dollar against other currencies; (xx) failure of Caterpillar or Cat Financial to comply with financial covenants in their respective credit facilities; (xxi) increased funding obligations under our pension plans; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) imposition of operational restrictions or compliance requirements if carbon emissions legislation and/or regulations are adopted; (xxiv) changes in accounting standards or adoption of new accounting standards; (xxv) adverse effects of natural disasters; and (xxvi) 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 22, 2011 for the year ended December 31, 2010. This filing is available on our website at www.caterpillar.com/secfilings.
SOURCE Caterpillar Inc.
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