Breaking new ground Caterpillar

BREAKING NEW GROUND

From underground coal mines in China and surface gold mines in Mali to the oil sands of Canada, Caterpillar Mining’s products are hard at work. Abigail Saltmarsh looks at recent developments at the company.

Strategic takeovers, new products and an ever-growing global customer base – as part of Caterpillar Inc, Caterpillar Mining is extending its reach even further. Driven by a key strategic imperative to expand its leadership and support for customers in the mining industry, the company has announced that it has completed its acquisition of Bucyrus International, Inc.

The company has also seen its 10,000th truck roll off the line and has launched the new 795F AC. This is Caterpillar’s first AC electric drive truck. A global leader

Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company is also a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.

With 50 production facilities in the United States and another 60 overseas, Caterpillar does about 44 per cent of its business within the USA and 56 per cent abroad. The company employs over 100,000 people – and of those, about 1250 are employed by the Caterpillar Global Mining organisation.

Strategic acquisition

It was in July 2011 that Caterpillar announced it had completed the acquisition of Bucyrus International. Caterpillar group president Steve Wunning would have executive office accountability for Caterpillar’s Global Mining business, including Bucyrus.

“We are pleased to complete this acquisition and are proud to welcome Bucyrus

employees to Caterpillar,” Mr Wunning said. “We are bringing together the best people, the best products and the best facilities from both companies. This acquisition is all about growth and unprecedented opportunities.

“Combined with our aggressive product development and capacity expansion plans, it will position Caterpillar to offer a broad range of surface and underground mining products and solutions to our customers.”

He continued: “The rapid development of the world’s emerging markets is expected to continue to drive an increasing need for commodities as billions of people around the world seek to improve their standard of living. Wherever there is mining, Caterpillar and our dealers will be there to serve our mining customers.

“Since we announced the acquisition last November, we’ve been busy planning to bring Bucyrus into the Caterpillar family. A dedicated team has been working on the integration plans and we are excited to begin implementation. As part of the integration process, we are pleased to report on the following key areas – organisation structure, branding and distribution, synergy benefits and funding.”

Long-term success

Mr Wunning said the purchase of Bucyrus was an important strategic acquisition for Caterpillar. The benefits include higher sales of new equipment and aftermarket parts and support, lower product cost and greater reliability driven by the use of Caterpillar engines and components in Bucyrus products and improved service and lower owning and operating costs driven by Caterpillar’s global manufacturing, supply chain and purchasing capabilities.

“The announcement marks the beginning of a new era in Caterpillar’s mining business,” said Wunning. “The joining of these two iconic companies is an incredible combination. It positions us for long-term success in an industry with significant growth potential, and we intend to fully leverage our unique strengths to help the mining customer make money. In turn, that will benefit our employees, our stockholders and the communities in which we live and work. We’re ready to get started.”

A single brand

He said Caterpillar had evaluated the best approach for branding legacy Bucyrus products. It had sought input from dealers, customers, the leadership of Bucyrus and

outside industry and branding experts. The conclusion was to create a single brand – Caterpillar – for all mining products. In addition, it became clear that the capabilities of the Cat dealer network with mining customers meant that all products should be sold and serviced by Cat dealers.

Cat offers an unparalleled range of mining and support equipment and technologies for all types of surface and underground mining. Its products are on more mine sites than any other equipment line, and are known for their reliability and durability. New products

In recent times, BHP Billiton Iron Ore has purchased the 10,000th large mining truck to emerge from the Caterpillar off-highway truck facility in Decatur, Illinois. This was a 793F. BHP Billiton also bought the 1,000th and 2,000th trucks to come down the 793 line.

The 793F, the fifth generation of the line, has a payload capacity of 250 tonnes and can be loaded by large wheel loaders, excavators and rope shovels. A versatile mining platform, it is available with high-altitude, extra-quiet as well as retarding packages. However, Caterpillar has recently taken the development of the 795F even further – and it has introduced the new 795F AC – its first electric drive truck. It matches a wide range of mining shovels, and a variety of body options allow it to be adapted to any mining application. Featuring stateof-the-art safety and maintenance features, the 795F AC also breaks new ground in operator comfort. Operators will appreciate the improved handling made possible by a unique braking system that combines four-corner blended retarding and oil-cooled disc brakes for the highest retarding speed on grade. n