- New facility will service a growing presence in the region and provide increased utilization of strategic sourcing initiatives
PEORIA, Ill., Oct. 13 /PRNewswire-Asia/ --
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 Services. More information is available at: http://www.cat.com .
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 http://www.CatLogistics.com .
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 http://www.cat.com/sec_filings .
