Caterpillar to Open New Mining Truck Facility in Indonesia; Company Also Expanding Capacity for Mining Trucks and Large Track-Type Tractors at Facilities in the United States

PEORIA, Ill., Nov. 11, 2011 /PRNewswire/ -- With a long-term view toward enhancing support for mining customers, Caterpillar Inc. (NYSE: CAT) announced today new plans to build a mining truck facility in Indonesia and to invest to increase capacity at the company's large mining truck facility and large track-type tractor facility in the United States.  

Caterpillar Chairman and CEO Doug Oberhelman and Group President Rich Lavin announced Caterpillar's latest capacity expansion plans while attending the 2011 Asia-Pacific Economic Cooperation Summit (APEC). The Summit brings business leaders, heads of state and other senior governmental officials together with the aim of improving trade and regional economic integration and cooperation between the 21-member nations. The United States is hosting the 2011 APEC Summit.

"It is important that we have announced our latest growth plans for mining at the APEC Summit because much of the global demand for commodities today is being driven by the positive economic growth and development that is taking place in the growth markets of the Asia\Pacific region," Oberhelman said. "The capacity expansion announced today is in addition to our previously announced investments to support our mining business, and it demonstrates our commitment to be the leader in this strategically important industry," Oberhelman added.  

New Truck Facility in Indonesia, Capacity Expansion at Existing Indonesian facility

To improve its support of mining customers in Asia\Pacific, Caterpillar plans to open a new mining truck facility in Batam, Indonesia. A range of mining truck chassis and bodies will be produced at the new facility and will be shipped to mining customers throughout Asia\Pacific. The company plans to invest about $150 million in the new facility, which is expected to be operational in 2012 for truck bodies, with the first trucks produced in the third quarter of 2013.  

"The mining industry is a critical part of Indonesia's economy and plays an important role in many of the key growth markets in Asia\Pacific," Lavin said. "We have a long and successful history operating in Indonesia, and with this announcement, we continue to build out our full business model across Asia\Pacific to better position Caterpillar to compete and succeed in this region, and to maintain our global leadership position," Lavin added.  

The Batam facility will be the second manufacturing operation for Caterpillar in Indonesia. The company's existing production facility, located in Cileungsi, West Java, opened in 1982 and is focused on producing excavators and skidders. The company has also approved plans to triple excavator production at the Cileungsi location. The 20-ton class of excavators made in Indonesia are primarily sold into the mining, forestry, construction and agricultural markets across Indonesia.  

Since the beginning of 2010, Caterpillar has announced a series of investments and capacity expansion plans for its operations across Asia, including a quadrupling of excavator production in Xuzhou, China, and a total of nine new facilities, which are now under construction in China. The company currently has 16 facilities in China, along with four research and development centers and three logistics and parts centers. Caterpillar also has previously announced the construction of two new manufacturing operations for Thailand.    

Capacity Expansion Plans for Decatur, Illinois and East Peoria, Illinois  

Caterpillar also is announcing plans for significant new investments at the company's existing manufacturing facilities in Decatur, Illinois, and East Peoria, Illinois. The company plans to invest nearly $300 million to further increase capacity for large mining trucks produced in Decatur. An additional capital investment of about $340 million is planned for production of large track-type tractors in East Peoria, which are used in mining applications around the world. The capacity expansion plans in Indonesia and the United States will be supported by other Caterpillar component facilities around the world, including the previously announced 850,000-square-foot, state-of-the-art manufacturing facility for the machining, assembly, test and painting of axle assemblies for large mining machines. The new axle assembly facility in Winston Salem, North Carolina, is scheduled to open next week.

"More than 90 percent of the large trucks made in Decatur are exported, and more than 80 percent of the large tractors made in East Peoria are exported," Oberhelman said.  "Beginning with capacity expansion plans announced in 2008, and once the plans announced today are fully in place, we will have nearly tripled our worldwide large truck capacity and doubled our large track-type tractor production capabilities in East Peoria," Oberhelman said. "It is fitting that we have announced these significant new investments for our operations in Asia and the United States while attending the APEC Summit because it demonstrates the importance of open and free trade between the United States and the Asia\Pacific region," Oberhelman said.  

The company expects the additional truck capacity in Decatur to be installed by 2016. The work to expand large track-type tractor production in East Peoria is expected to be completed by 2015.  

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.