Cat Reman and Vestas Wind Systems Reach Agreement on Remanufacturing Wind Turbine Components

PEORIA, Ill. & AARHUS, Denmark, Nov. 07, 2011 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) and Vestas Wind Systems (NASDAQ: VWS) have reached a 10-year, global agreement to remanufacture wind turbine components. Vestas, of Aarhus, Denmark, is the world's leading wind turbine manufacturer, with an installed base of 44,500 turbines.

Vestas has chosen to enter this agreement to ensure remanufacturing services of high quality and at a competitive price for its customers. With the agreement, Caterpillar will supply Vestas with cost-competitive remanufacturing services that will enable its components to meet the highest quality and reliability standards, while at the same time reducing the impact on the environment. The relationship with Caterpillar will be managed by Vestas' Spare Parts & Repair Business Unit and will cover the remanufacture of minor components and sub-component repair in support of Vestas' internal repair sites.

"Caterpillar is a global leader in remanufacturing, and we're excited to be providing those services to Vestas," said Greg Folley, Caterpillar vice president with responsibility for the Remanufacturing & Components Division. "Our tradition of quality and continuous improvement will serve Vestas customers well. This agreement is also an example of Caterpillar's focus on sustainable development: by applying our technology and innovation to other products, we use our resources more efficiently, have less impact on the environment and support our customers at the same time."

Cat Reman will use its global presence and expertise to remanufacture Vestas wind turbine components using its existing facilities, equipment and suppliers. Remanufacturing will begin in Caterpillar's North America facilities followed by facilities in Europe and Asia.  

"The agreement with Caterpillar shows Vestas' commitment to creating high-quality and cost-competitive solutions while at the same time doing it in the most sustainable way possible.  We believe that is what makes our customers satisfied and what creates a business model where the driver is the long-term development," says Phil Jones, President of Vestas' Spare Parts & Repair division.

Vestas Spare Parts & Repair is at the core of Vestas' Service business. The global wind turbine manufacturer forecasts the total Service operations to become a EURm 700 business by the end of 2011.

Remanufacturing operations return end-of-life components to their original "same-as-when-new" condition in terms of reliability, durability and performance. It reduces waste, minimizes the need for raw materials to produce new parts and supports both Caterpillar and Vestas in providing customers with the lowest life cycle cost over the life of a product.

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.

About Vestas:

Every single day, Vestas wind turbines deliver clean energy that supports the global fight against climate change. Wind power from Vestas’ more than 44,500 wind turbines currently reduces carbon emissions by approximately 50 million tons of CO2 every year, while at the same time building energy security and independence. Today, Vestas operates in 66 countries, providing jobs for over 20,000 passionate people at our service and project sites, research facilities, factories and offices all over the world. For images, videos and background information visit www.vestas.com/media

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.