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Caterpillar further develops operations in Africa and Middle East

Caterpillar has revealed details of its “significant” investment in new and upgraded parts distribution centres in Africa and the Middle East (AME). The investment, highlighted during Cat’s recent Construction Days event in Antalya, Turkey, is in addition to the US$460 million invested by the company’s AME dealers in 2011 to improve local operations, reports Guy Woodford. “We are going to open in March [2013] a complete new parts distribution centre in Dubai, which is significant,” said Christian Dillier, A
December 21, 2012 Read time: 3 mins
AME and CIS markets show a huge growth in demand for construction equipment - Damien Giraud
178 Caterpillar has revealed details of its “significant” investment in new and upgraded parts distribution centres in Africa and the Middle East (AME).

The investment, highlighted during Cat’s recent Construction Days event in Antalya, Turkey, is in addition to the US$460 million invested by the company’s AME dealers in 2011 to improve local operations, reports Guy Woodford.

“We are going to open in March [2013] a complete new parts distribution centre in Dubai, which is significant,” said Christian Dillier, AME region manager for Cat Europe, Africa and Middle East Distribution Services. He was speaking at

the Antalya 2012 event, which attracted around 1,000 visitors making it Cat’s biggest single event staged to date for the Africa, Middle East and CIS markets. “We are right now looking at a new one in West Africa and have upgraded our

centre in [Johannesburg] South Africa. That’s huge investments from Cat’s side and gives you an idea of how Africa and the Middle East and their developing countries are really critical for us.”

Dillier said that Cat had a “very clear [construction equipment] market leadership” in Africa and the Middle East and is keen to increase it further.

Damien Giraud, marketing manager for Cat Europe, Africa and Middle East, Global Construction Infrastructure, said Cat had built specific machines for AME and CIS markets to tap into their “huge growth” in demand for construction equipment and greater machine fuel efficiency.

“These customers have got specific needs, not just for engines but also design solution services. Emission regulations [in these markets] have evolved in the last three to four years,” said Gillard.

On Cat’s response to the global economic downturn, Dillier said the company was looking to post revenues of US$70 billion for 2012 following it $60.1 billion revenues in 2011.

“[The year] 2009 was a very deep recession for the vast majority of the countries of the world. We came out in 2010/11 with record profits,” said Giraud.

“We have a worldwide footprint of suppliers; a worldwide footprint of manufacturing; a worldwide footprint of dealers and, more importantly, a worldwide footprint of customers.”

In October, Caterpillar Financial Services (Dubai) and 6737 Standard Bank, Africa’s largest banking group, announced a collaboration agreement. It will see Standard Bank offering a range of financial services to Caterpillar customers in Nigeria, Kenya, Uganda, Tanzania, Ghana, and Sierra Leone, countries covered by the 2411 Mantrac Unatrac Group of Cat dealerships.

The collaboration will be branded Cat Financial Services, Services Provided by Standard Bank Group.

Giraud said: “In 2009, when the financial crisis hit our customer base, those customers saw the value of Cat Financial. A lot of commercial [bank] branches disappeared or said they would ‘see you in two to three years or so when things get better.’ But I have seen letters on my desk of customers saying: ‘Thank you very much. I’m still in business today because you gave me the opportunity to pay later or in a different fashion.’ See also feature article this issue.

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