December 2005

Caterpillar creates global alliance with JLG

Peoria, IL— In a move that will better position the company to respond to customer needs and provide greater value, Caterpillar Inc. announced that it has signed definitive agreements to enter into a global alliance with JLG Industries, Inc. to produce a full line-up of Caterpillar branded telehandlers. The alliance is a strong strategic fit for both companies and will give Caterpillar dealers and customers greater access to a quality range of Cat branded telehandler products. The deal is expected to close prior to the end of the year, subject to consultation with employees and their representatives.

Caterpillar’s telehandler products are currently produced at BCP’s plant in Leicester, England, along with four other machine product groups. Under the alliance agreement, JLG will develop and manufacture for Caterpillar a line-up of Cat branded telehandlers for global distribution. Caterpillar will retain responsibility for the B-Series telehandlers and earlier models, manufactured and sold by Caterpillar prior to the transition of production to JLG, including warranty and service.

As telehandler production is shifted from Caterpillar’s Leicester operations to the JLG facilities, BCP’s European operations will undergo a strategic restructuring to better position the manufacturing of its four other product groups consisting of backhoe loaders, small wheel loaders, compact wheel loaders and mini hydraulic excavators. Caterpillar will continue production of these existing machines at Leicester.

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