In a move that will better position the company to respond to customer needs and provide greater value, Caterpillar Inc. announced recently 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.
“This alliance leverages our respective strengths, combining Caterpillar’s global brand, distribution expertise and component capabilities with JLG’s strong design capabilities in the telehandler and lift industry, to deliver world-class telehandler product to our customers,” said Ed Rapp, vice president of Caterpillar’s Building Construction Products (BCP) Division.
“JLG is very pleased to be able to form an alliance with Caterpillar and its global dealer network to build on JLG’s core strengths in the access market to provide a broad line-up of quality telehandlers to customers throughout the world,” commented Bill Lasky, chairman of the board, president and chief executive officer of JLG.
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.
“The actions we’re taking with our telehandler product group are important to revitalizing our Leicester operations,” Rapp commented. “These changes will strengthen our operations and keep us in a position to be competitive and profitable. Ultimately that’s good for the employees and communities in which we live and work.”
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.