Business
Caterpillar and Finning Reach Agreement on Remanufacturing Services
Caterpillar and Finning Reach Agreement on Remanufacturing Services.
About this update from Finning International Inc.
[{"type":"text","content":"\n\n\n\n\n Caterpillar Expands Reach in Rail, Other Industrial Engine Component\n Remanufacturing\n\nPEORIA, Ill., March 29 /CNW/ -- Caterpillar Inc.\n(NYSE: CAT) and Finning International Inc. (Finning) have announced that\nCaterpillar and O.E.M. Remanufacturing Company Inc. (OEM Reman), a subsidiary\nof Finning, have reached agreement for Caterpillar to acquire OEM Reman's rail\nand non-Cat engine component remanufacturing business, together with related\nwork-in-progress and inventory.\nIn addition, Caterpillar and OEM Reman have agreed to enter into an\ninitial two-year agreement under which OEM Reman will provide remanufacturing\nservices to Caterpillar for these lines of business. Caterpillar will provide\nall sales and marketing functions and OEM Reman will perform the\nremanufacturing work for the initial term of the agreement.\nThe transaction does not affect the remanufacturing work that OEM Reman\nperforms for Finning (Canada) on Cat branded equipment. OEM Reman will\ncontinue to perform remanufacturing services under a long-term contract for\nFinning (Canada) in support of their customers in western Canada.\n\"This transaction demonstrates the confidence that Caterpillar has in\nFinning as a business partner and in OEM Reman's ability to perform to\nCaterpillar's stringent quality requirements and aggressive production targets\nin a safe, cost-effective manner,\" said Doug Whitehead, President and CEO of\nFinning International Inc.\n\"OEM Reman brings proven expertise in the remanufacture of industrial\ncomponents, and has a valued reputation in markets that we are well positioned\nto serve,\" said Steve Fisher, Caterpillar vice president with responsibility\nfor remanufacturing.\nCaterpillar, one of the world's largest remanufacturers, announced in 2004\nthat its remanufacturing group would offer its capabilities to Original\nEquipment Manufacturers (OEMs) in other industries, including automotive and\nindustrial products. Caterpillar has entered a number of strategic alliances\nwith OEMs and remanufacturers to expand its presence in external\nremanufacturing markets.\n\nAbout O.E.M. Remanufacturing Co.\nOEM Reman is one of North America's most advanced engine and powertrain\ncomponent remanufacturing providers, serving the mining, rail, construction\nand forestry sectors. OEM Reman operates from a new, state-of-the...