Piracicaba Selected as Site for Remanufacturing and Hose Factory in Brazil

It was announced that the city of Piracicaba, in the state of São Paulo, will be the site for Caterpillar's newest factory in Brazil. The new factory, which is expected to begin production in August 2013, will remanufacture engine components and assemble hydraulic hoses. These two operations are expected to employ 70 operational and technical employees in a 10,000 square-meter facility. The plan to open this new Caterpillar factory in Brazil was announced by the Governor of São Paulo State, Geraldo Alckmin, in June 2012.

The remanufacturing process consists of returning an end-of-life component to a "good as when new" condition in a factory environment. In the remanufacturing process, the end of life components are disassembled, cleaned,rigorously inspected and,when possible, salvaged, leveraging Caterpillar advanced technology salvage processes.

"This is one of Caterpillar's most important contributions to sustainable development, as we will extend the life of non-renewable resources," said Luiz Carlos Calil, president of Caterpillar Brazil. "This will be the first Caterpillar remanufacturing factory in South America, using Cat Reman technology. We're happy to develop this new operation and continue to grow this business in Brazil," said Calil.

"We are pleased to offer the best services to our customers," said Greg Folley, vice president of Caterpillar's Remanufacturing and Components Division. "Remanufactured products reduce equipment operation costs, while increasing machine availability for work. In addition, remanufactured components cost around 40 to 60 percent of a new component while offering the same reliability, quality, performance and warranty. The advantage for the environment is a reduction of up to 85 percent of energy, 90 percent of water, 99 percent of raw materials and 99 percent of solid waste, thus utilizing less landfill space," explained Folley. "Opening this facility is in direct alignment with our quest to be the Global Leader, execute our Global Leader Profile visions and stay competitive for the future of Remanufacturing and Components Division and ultimately the Caterpillar enterprise."

"Remanufacturing is a new technology in Brazil and one that São Paulo sought out," said Luciano Almeida, president of Invest SP, the governmental agency responsible to attract investments to the São Paulo State. According to Almeida, the position of São Paulo market economy green Brazil accredits the State as the main target for this type of investment.

In the same plant, Caterpillar is opening a hose factory that will support Caterpillar's business expansion in the country. This operation will be the ninth Caterpillar factory worldwide specializing in hose products and the first in the Southern hemisphere. The remanufacturing and hose plant is the 14th Caterpillar facility in Brazil.