Pit & Quarry, December 2010

THE LATEST ON EQUIPMENT TECHNOLOGY Caterpillar to acquire Bucyrus International Based on a strategy to expand its position in the mining equipment industry Caterpillar Inc will acquire Bucyrus International Inc for about 86 billion with the transaction expected to close in mid 2011 the companies announced The acquisition also positions Caterpillar to capitalize on the robust outlook for commodities driven by rapid growth in emerging markets which are improving infrastructure rapidly developing urban areas and industrializing their economies the company said Caterpillar intends to locate its mining business headquarters in South Milwaukee Wis where Bucyrus headquarters are located and maintain the Bucyrus brand for the principal Bucyrus legacy products For several years mining customers have been asking us to expand our range of products and services to better serve their increasingly complex requirements said Caterpillar Chairman and CEO Doug Oberhelman This announcement says to those customers we heard you loud and clear It is a strong statement about our belief in the bright future of the mining industry Our strategy calls for disciplined investment in attractive industries that value our product and service delivery model Our performance through the global economic turmoil of 2008 2009 allowed us to emerge with a strong balance sheet and the ability to make strategic investments in companies the 86 BIllIon transaCtIon Is expeCted to Close In mId 2011 like Bucyrus he added This and other recent acquisitions will position Caterpillar for industry leadership and will be positive for our stockholders customers and employees Tim Sullivan Bucyrus president and CEO added This is an outstanding and financially compelling transaction for our shareholders More fundamentally it is a testament to the tremendous value our talented team of employees has created over the past several years and to the strength of our brand in the global mining machinery marketplace The closing of the transaction is subject to regulatory approvals customary closing conditions and approval Volvo CE completes facility expansion Volvo Construction Equipment Volvo CE has completed a 30 million 200000 sq ft expansion of its manufacturing facility in Shippensburg Pa and is now in full production of its comprehensive heavy equipment line The broad scale expansion of the facility began in June of 2009 to improve manufacturing flow and increase production capacity to meet an anticipated growth in the demand for construction equipment in North America and to incorporate the full line production of Volvo motor graders Pit Quarry was on hand as the company showed off the newly expanded facility to the press The new site now covers 580000 sq ft and employment has risen to about 600 at the complex The Shippensburg facility currently produces more than 60 models of Volvo motor graders asphalt pavers milling machines and soil and asphalt compactors by Bucyrus stockholders At that time Caterpillar Group President Steve Wunning will have executive office accountability for Bucyrus along with his current responsibilities for the companys mining business Even today at mine sites around the world our customers are using Bucyrus shovels to load Caterpillar mining trucks Wunning said This combination as well as the significant expansion in products and facility capacity already announced gives us the opportunity to expand the range of surface and underground mining products and solutions offered to customers by Caterpillar and its dealer network In other company news Caterpillar announced it would acquire Germany based MWM Holding GmbH a global supplier of alternative engines from 3i for about 810 million Caterpillar said the acquisition would expand customer options for sustainable power generation solutions MWM will become part of Cats Electric Power Division which supplies natural gas and diesel generator sets and integrated power systems involved in the generation control and supply of electricity The new side of the plant is seen here part of a 200000 sq ft expansion The site now employs about 600 people 10 PIT QUARRY December 2010 www pitandquarry com