Cat Plans to Open Parts Distribution Center in Dubai

December 28, 2010

Caterpillar Logistics Services (Cat Logistics) announced plans to open a new parts distribution center in Dubai, United Arab Emirates. The new distribution center will be the third facility added to Caterpillar’s global service parts distribution network in the last five years. The new 450,000-square-foot facility is part of the multiyear expansion and enhancement of the Europe, Africa and Middle East (EAME) Cat Parts distribution network. The Dubai Distribution Center will employ between 100 and 120 people and will further strengthen primary aftermarket parts support in the Africa and Middle East region.

“We are very pleased to be adding the Dubai Distribution Center to our industry leading global parts network," said Steve Larson, Caterpillar vice president with responsibility for parts distribution and logistics, Chairman and President of Caterpillar Logistics Services, Inc. “With the outstanding product support capability of Cat dealers in the region and the improved parts availability this operation will deliver, we will continue providing customers an unmatched level of after-sale support.”

Once operational, the Dubai Distribution Center will increase total warehouse capacity for the EAME network, adding to existing Distribution Centers in Grimbergen, Johannesburg and Moscow. “We are excited about our overall growth opportunities in the Middle East and Africa markets and, along with our dealers, are investing in expanding our facilities,” said Paolo Fellin, Caterpillar vice president with responsibility for EAME Distribution. “The Dubai Distribution Center, combined with further enhancements to our Johannesburg Distribution Center, will allow us to improve parts and components availability and the delivery process to our dealers and customers in this growth region.”

The SAP Service Parts Management (SPM) system will be deployed at the Dubai
Distribution Center. SPM is a global solution that replaces multiple legacy software systems supporting the Cat Parts network. SPM has been successfully implemented in North America in two locations and is also being implemented at the Clayton, Ohio, Distribution Center which is under construction and set to open in 2011.
The Dubai facility will also contribute to Caterpillar’s sustainable development goals by reducing airfreight for parts ordered in the region. Operations for the new Dubai Distribution Center are expected to be underway in 2012.

The new Dubai Distribution Center is an important part of Caterpillar’s overall plan to
enhance the global Cat Parts distribution network and get parts to dealers and customers faster. Since the inception of this plan five years ago, capacity has been added in every region with the opening of the China Distribution Center in Shanghai in 2006, the Russia Federation Distribution Center in Moscow in 2007 and the Waco Distribution Center in Texas in 2009.