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Caterpillar Provides Update on Impact of Crisis in Japan

Fri April 15, 2011 - Midwest Edition
CEG



North and Central Florida’s Cat dealer, Ring Power Corporation, reported Caterpillar’s ongoing commitment to aid in Japan. Recently, Caterpillar Inc. and Caterpillar Japan Limited have actively monitored the on-going developments in Japan following the devastating earthquake and tsunami to report ramifications for Cat and the Caterpillar dealer network.

While continuing to provide support for all employees living and working in Japan, Caterpillar is focusing resources from around the world to determine the full scope and impact on the company’s supply chain. Caterpillar’s facilities in Tokyo, Akashi and Sagami were not damaged by the earthquake, and are outside of the current area the Japanese government has declared as a mandatory evacuation zone. To date, both the Sagami and Akashi facilities have continued to operate and produce product, and the disruption to the supply chain in Japan has not stopped production at other Caterpillar facilities around the world.

Cat is actively developing alternative sources for components produced by Japanese-based suppliers, should they not be able to fulfill orders. Although Cat’s Japanese interests appear sound, Caterpillar cautions it is possible some facilities may be sporadically impacted throughout Japan’s recovery.

In addition to Caterpillar’s economic research on behalf of suppliers, employees, dealers and customers, Caterpillar Japan Limited has pledged $1 million to support disaster relief through in-kind equipment donations of machinery and generators to Japanese governmental agencies. In America, the Caterpillar Foundation has announced a $1 million grant to the American Red Cross with an additional promise to match up to $500,000 in contributions made by Caterpillar employees, retirees and dealer employees to the Red Cross before April 14, 2011.