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PEORIA, Ill. – Caterpillar announced recently that it has signed a definitive agremenet to enter into a global alliance with JLG Industries to produce a full line of Cat-branded telehandlers. Caterpillar and JLG say the alliance is a strategic fit for both companies and Caterpillar dealers and customers will have greater access to a range of Cat telehandlers. The deal is expected to close before year-end.
"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.
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"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," added 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 a line of Cat-branded telehandlers for global distribution. The production will be integrated into JLG's Belgium and Pennsylvania operations. 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.
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"The actions we're taking with our telehandler product group are important to revitalizing our Leicester operations," Rapp said. "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.