• Home
• Construction
• News Article

Caterpillar begins construction on regional parts distribution centre in Jafza

450,000 square-foot facility is part of Cat Logistics' expansion plan to strengthen after-market support in Middle East, Africa

DUBAI, United Arab Emirates.-- Caterpillar Logistics Services, Inc. (Cat Logistics), a wholly-owned subsidiary of Caterpillar Inc., has formally launched construction work on a new regional parts distribution centre in Jafza .

The 450,000 square-foot state-of-the-art facility, known as the Middle East Distribution Centre, will strengthen Cat Logistics' primary after-market parts support network in the Middle East and Africa region.

A brief ceremony to mark the occasion at the site of the warehouse complex was attended by senior officials from Economic Zones World and Caterpillar, including Ibrahim Mohammed Al Janahi, Deputy CEO, Jafza and Chief Commercial Officer, and Ms. Barb Hodel, Director of Cat Distribution Services,

Between 100 and 120 people will be employed at the Middle East Distribution Centre, which is being developed as part of an ongoing plan to expand and enhance the Cat Parts distribution network in Europe, Africa and the Middle East (EAME). Once operational, it will increase total warehouse capacity of the EAME network.

"The new Middle East Distribution Center is an important part of Caterpillar's overall plan to develop the global Cat Parts distribution network further and get parts to dealers and customers faster," said Steve Larson, Vice President of Caterpillar Inc., Chairman and President of Caterpillar Logistics Services, Inc. "We are very pleased to get construction of this new facility underway in Jafza , which we believe is ideally located for our business. It will improve parts availability in the region, contributing to high levels of machine uptime, which is critically important to our customers."

"There can be no greater testimony than when a leading industrial manufacturer establishes a global service parts centre with you to strengthen their presence in the region," said Ibrahim Mohammed Al Janahi, Deputy CEO, Jafza and Chief Commercial Officer. "Caterpillar Logistics has reinforced their vision and trust in us and Dubai as the region's premier business and logistics hub. We congratulate and assure them of our full support and extend our best wishes for their further success and growth in the region."

Cat Logistics launched its global expansion plan in 2006 and since then has added critical distribution capacity to its operations in China, Russia, Germany and the United States.

-Ends-

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 www.caterpillar.com.

About Cat Logistics:
Caterpillar Logistics Services, Inc. provides world-class supply chain solutions and services to its parent company, Caterpillar Inc., and more than 50 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 www.CatLogistics.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: 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) 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; (x) international trade and investment policies, such as import quotas, capital controls or tariffs; (xi) the possibility that Caterpillar's introduction of Tier 4 emissions compliant machines and engines is not successful; (xii) market acceptance of Caterpillar's products and services; (xiii) 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; (xiv) union disputes or other employee relations issues; (xv) Caterpillar's ability to successfully implement the Caterpillar Production System or other productivity initiatives; (xvi) adverse changes in sourcing practices of our dealers or original equipment manufacturers; (xvii) compliance costs associated with environmental laws and regulations; (xviii) alleged or actual violations of trade or anti-corruption laws and regulations; (xix) additional tax expense or exposure; (xx) currency fluctuations, particularly increases and decreases in the U.S. dollar against other currencies; (xxi) failure of Caterpillar or Cat Financial to comply with financial covenants in their respective credit facilities; (xxii) increased funding obligations under our pension plans; (xxiii) significant legal proceedings, claims, lawsuits or investigations; (xxiv) imposition of operational restrictions or compliance requirements if carbon emissions legislation and/or regulations are adopted; (xxv) changes in accounting standards or adoption of new accounting standards; (xxvi) adverse effects of natural disasters; and (xxvii) 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.

© Press Release 2011