Progress Rail Announces Grand Opening of Muncie, Indiana Locomotive Assembly Operation
ALBERTVILLE, Ala., Oct. 28, 2011 /PRNewswire/ -- Almost one year to the date of announcing its decision to locate a locomotive manufacturing facility in Muncie, Indiana, Progress Rail Services Corporation (PRSC), a wholly-owned subsidiary of Caterpillar Inc. (NYSE: CAT), officially opened its Muncie operation.
Progress Rail announced the site selection in October of 2010 and began work in earnest in January of this year. In less than 10 months, the facility has produced completed diesel-electric locomotives for our customers. The Muncie facility is the first locomotive assembly plant to open in the United States in many years, and is the latest milestone to mark Progress Rail's strategic approach to compete and win in the global railway industry.
"This is the type of responsiveness our customers have come to expect from Progress Rail ," said Billy Ainsworth, president and CEO of Progress Rail. "Through its Progress Rail subsidiary, Caterpillar has proven its commitment to the rail and transit industries and since 2006 has invested more than $2 billion to meet our customers' growing needs."
Caterpillar and its subsidiaries are recognized as the global leaders in diesel engine technology, which allows Progress Rail and EMD to offer the broadest range of locomotive engine solutions and remain the only manufacturer of 2- and 4-cycle locomotive engines. The companies are also working on numerous alternative fuel projects for customers. In December of 2008, Progress Rail utilized the first common rail fuel system for mainline locomotives, with its 4,300-horsepower PR43C locomotive, powered by two rugged Cat® engines – the C-175 and C-18.
In 2010 alone, Caterpillar and its subsidiaries invested a record $1.9 billion in product research and development. Through these collective research and development efforts, Progress Rail and EMD are able to produce the most durable, reliable and sustainable locomotives in the world.
Within the past year, Progress Rail also announced two additional locomotive assembly plants, as a further commitment to increasing capacity to produce locomotives globally, with one in Sete Lagoas, Minas Gerais, Brazil, and another in Sahagun, Mexico.
"We are proud to be in Muncie, Indiana, today celebrating the official opening of our locomotive assembly plant. We look forward to being a part of this community's economic future for many years to come," Ainsworth said. "We have assembled a talented and dedicated group of local employees eager to meet our customers' needs. As we continue to grow our business and build additional manufacturing capacity, Progress Rail will be well-equipped to produce and support the largest global population of locomotives."
Since acquiring EMD last year, Caterpillar and Progress Rail have made significant investments in new equipment and plant improvements, to enable EMD to create new products and services for the international railway industry.
"We want to thank our employees, our customers, the Muncie community and the State of Indiana for their support," said Dan Hanback, senior vice president of operations. "This is about meeting the challenging competitive realities in the global rail industry, but one that carries great potential. We're proud to say that Muncie is going to help us do that."
About Progress Rail:
Progress Rail Services, a wholly owned subsidiary of Caterpillar Inc., is a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America. We serve our customers through a network of more than 140 locations across the United States, Canada, Mexico, Brazil, Italy, Germany, and the United Kingdom, with more than 4,700 employees. Progress Rail Services is headquartered in Albertville, Alabama.
Through its acquisition of Electro-Motive Diesel, Progress Rail has expanded its network of global locations, furthering its commitment to providing industry-leading products and services. Founded in 1922, Electro-Motive Diesel is an original equipment manufacturer of diesel-electric locomotives. Headquartered in LaGrange, Illinois, EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and is a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs, and stationary power generation. The company is the only diesel-electric locomotive manufacturer to have produced more than 72,500 engines and has the largest installed base in both North America and worldwide. EMD also has an extensive aftermarket business offering replacement parts, maintenance solutions and a range of value-added services.
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.
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 Progress Rail Services
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