Cat Reman Overview and History

Caterpillar is a global leader in the remanufacturing business. Since 1973, Caterpillar has remanufactured diesel engines and components for its own machines and power systems. What began as a small operation to meet the product support needs of our truck engine customers has grown to include more than 700 products, including hydraulics, drivetrain, fuel systems and even tires. Today, Caterpillar's remanufacturing operations include nearly 4,000 team members and 17 facilities worldwide serving the product support needs of Cat dealers and external customers.

Remanufacturing is the process of returning end-of-life products to the same condition as when that product was originally manufactured, in a manufacturing environment. Products are returned to the original "same-as-new" condition or sometimes better in terms of durability, life span and performance. This technology helps our customers remain competitive and promotes a sustainable environment by reducing waste and the need for raw materials to make new parts. And over-the-counter availability gives customers more options at repair and overhaul time. The results are maximum productivity and lower costs.

The environmental benefits of remanufacturing are clear. Caterpillar recycles an average of more than 148 million pounds of end-of-life iron annually. Through remanufacturing, nonrenewable resources are kept in circulation for multiple lifetimes - supporting the company's goal for a zero landfill footprint by 2020. Also, remanufacturing a component requires 85 to 95 percent less energy and material than manufacturing the same new component.

In 2004, Caterpillar announced plans to offer remanufacturing services to other Original Equipment Manufacturers (OEMs). Like Cat Logistics and Cat Financial, Cat Reman takes a Caterpillar core competency into new markets. We entered automotive remanufacturing on September 1, 2004, by acquiring Williams Technologies in the United States and Wealdstone Engineering in the United Kingdom. Since then we've grown quickly in the auto, industrial and electronics markets and formed key alliances with OEMs in related industries.

Highlights of recent Caterpillar actions to grow and expand its remanufacturing business include:

• The acquisition of Progress Rail in 2006, which marked Caterpillar's entry into a full line of rail aftermarket services, including remanufacturing.
• We expanded our presence in Asia with the opening of a facility in Shanghai, China.
• In mid-2007, we completed our acquisition of Eurenov S.A., expanding our European presence in automotive and industrial engine and transmission remanufacturing.
• In January of 2007, Reman acquired Franklin Power Products and International Fuel Systems, based in Franklin, IN. This acquisition was in alignment with our strategic alliance with Navistar and allowed us to enter the light to medium-duty diesel engine market.
• We acquired certain assets of Gremada Industries Inc. in July 2008. Based in Fargo, ND, this acquisition was in alignment with our mining products portfolio.
• In mid-2011, we opened a new facility in Singapore to serve as the regional source for remanufactured major components, including mining truck engines, transmissions, final drives and torque converters. 
• In August 2011, we announced plans to expand our Fargo, ND facility in order to support the mining industry. The $50 million expansion will add 225,000 square feet and roughly 250 workers.