Caterpillar Announces New Parts Distribution Center in Dubai

Dec 22, 2010, 08:00 ET from Caterpillar Inc.

MORTON, Ill., Dec. 22, 2010 /PRNewswire/ -- Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly owned subsidiary of Caterpillar Inc. (NYSE: CAT), today announced plans to open a new parts distribution center in Dubai, United Arab Emirates. The new distribution center will be the third facility added to Caterpillar's global service parts distribution network in the last five years. The new 450,000-square-foot facility is part of the multiyear expansion and enhancement of the Europe, Africa and Middle East (EAME) Cat Parts distribution network. The Dubai Distribution Center will employ between 100 and 120 people and will further strengthen primary aftermarket parts support in the Africa and Middle East region.

"We are very pleased to be adding the Dubai Distribution Center to our industry leading global parts network," said Steve Larson, Caterpillar vice president with responsibility for parts distribution and logistics, Chairman and President of Caterpillar Logistics Services, Inc. "With the outstanding product support capability of Cat dealers in the region and the improved parts availability this operation will deliver, we will continue providing customers an unmatched level of after-sale support."

Once operational, the Dubai Distribution Center will increase total warehouse capacity for the EAME network, adding to existing Distribution Centers in Grimbergen, Johannesburg and Moscow. "We are excited about our overall growth opportunities in the Middle East and Africa markets and, along with our dealers, are investing in expanding our facilities," said Paolo Fellin, Caterpillar vice president with responsibility for EAME Distribution. "The Dubai Distribution Center, combined with further enhancements to our Johannesburg Distribution Center, will allow us to improve parts and components availability and the delivery process to our dealers and customers in this growth region."

The SAP Service Parts Management (SPM) system will be deployed at the Dubai Distribution Center. SPM is a global solution that replaces multiple legacy software systems supporting the Cat Parts network. SPM has been successfully implemented in North America in two locations and is also being implemented at the Clayton, Ohio, Distribution Center which is under construction and set to open in 2011.

The Dubai facility will also contribute to Caterpillar's sustainable development goals by reducing airfreight for parts ordered in the region. Operations for the new Dubai Distribution Center are expected to be underway in 2012.

The new Dubai Distribution Center is an important part of Caterpillar's overall plan to enhance the global Cat Parts distribution network and get parts to dealers and customers faster.  Since the inception of this plan five years ago, capacity has been added in every region with the opening of the China Distribution Center in Shanghai in 2006, the Russia Federation Distribution Center in Moscow in 2007 and the Waco Distribution Center in Texas in 2009.

About Caterpillar:

For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive 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, 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:

About Cat Logistics:

Caterpillar Logistics Services, Inc. provides world-class supply chain solutions and services to 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 a variety of market sectors, which include automotive, industrial and aerospace service parts, consumer durables, technology, electronics and manufacturing logistics. Cat Logistics also provides maintenance, repair and operations (MRO) logistics, and transportation/network design consulting services. 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) the possibility that the acquisition by Caterpillar of Bucyrus International, Inc. does not close for any reason, including, but not limited to, a failure to obtain required regulatory approvals, (xxi) inability to successfully integrate and realize expected benefits from acquisitions; (xxii) significant legal proceedings, claims, lawsuits or investigations; (xxiii) imposition of significant costs or restrictions due to the enactment and implementation of health care reform legislation and financial regulation legislation; (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 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.