JLG Industries, Inc. (McConnellsburg, Pa.) entered into a global alliance with Caterpillar Inc. (Peoria, Ill.) to design and produce a Cat-branded telehandler product line for Caterpillar dealers. "This alliance leverages our respective strengths, combining Caterpillar's global brand, distribution and component expertise with JLG's strong design capabilities in the telehandler and lift industry, to deliver a world-class telehandler product line to our dealers," said Ed Rapp, vice president of Caterpillar's Building Construction Products Division (BCP).
Under the terms of the 20-year strategic alliance agreement, JLG will supply the North American and Latin American markets from its McConnellsburg, Pa facility, and the markets in Europe and the rest of the world from its Maasmechelen, Belgium facility.
To support these markets, JLG will acquire certain equipment, tooling, and intellectual property of Caterpillar’s telehandler group in Leicester, England for $51.4 million. JLG expects to invest an additional $30 million during 2006 for the development of the North American Caterpillar product line and for capacity improvements in both Belgium and Pennsylvania to accommodate the additional volume.
Source: JLG Industries and Caterpillar.