In a bid to expand its Cat parts distribution network,
Caterpillar Inc.
(
CAT
) announced that its wholly owned subsidiary, Caterpillar Logistics
Inc., is building a new 500,000-square foot parts distribution
center in San Luis Potosi, Mexico. The new distribution center is
expected to be operational by mid-2013.
San Luis Potosi has been chosen for the distribution center
given its proximity to major airports, railways and also due to
easy accessibility with major cities in Mexico. The facility
is expected to create around 150 jobs.
This new facility is part of Caterpillar's expansion plan to
enhance its part distribution network in Central and South America.
This will be the company's sixth parts distribution center
following facilities in Central California; Clayton, Ohio; Spokane,
Washington; Waco, Texas; and Dubai, UAE.
In addition to building new facilities, Caterpillar has capacity
expansion projects in place at existing Cat Logistics facilities in
Atlanta, Georgia; Grimbergen, Belgium; Melbourne, Australia; and
Shanghai, China. These projects are focused on increasing capacity
and realizing network efficiencies to ensure unmatched customer
support. All of these facilities are using common systems and
processes in addition to Service Parts Management (SPM), a global
solution that replaces multiple legacy software systems supporting
the Cat parts network.
Apart from expanding the Cat parts distribution network,
Caterpillar is coming up with new facilities, adding production
capacity for many of its products in the United States, South
America, Europe and across Asia, to position itself for meeting the
growing demand for its products in future.
We believe Caterpillar's expansion plans of opening new
facilities and expanding existing operations, particularly in the
emerging markets, will boost its long-term potential. We
believe that the top line will continue to grow on the back of
increasing demand for construction and mining equipment. The shares
of Caterpillar presently retain a Zacks #2 Rank (short-term Buy
recommendation).
Peoria, Illinois-based Caterpillar Inc. is the manufacturer of
construction and mining equipment, diesel and natural gas engines,
and industrial gas turbines. The company is one of the few leading
U.S. companies in an industry that competes globally from a
principally domestic manufacturing base. Caterpillar operates two
divisions - Machinery and Power Systems (M&PS) and Financial
Products. Caterpillar competes with the likes of
CNH Global NV
(
CNH
),
Komatsu Ltd.
(
KMTUY
) and
Volvo AB
(
VOLVY
).
CATERPILLAR INC (
CAT
): Free Stock Analysis Report
CNH GLOBAL NV (
CNH
): Free Stock Analysis Report
VOLVO AB ADR B (
VOLVY
): Free Stock Analysis Report
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