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Wacker Neuson in Linz to manufacture mini excavators for Caterpillar from mid 2011 onwards

July 6, 2010

In June 2010 Wacker Neuson and Caterpillar Inc. in Peoria, IL signed an agreement regarding the design, manufacture, distribution and support of Caterpillar mini excavators up to 3 tons. The aim of the deal is the formation of a long-term strategic alliance between the two parties. The agreement with a term of 20 years includes the development and manufacture of mini excavators with an operating weight of up to three tons designed to Caterpillar’s specifications at Wacker Neuson’s production plant in Linz, Austria. Wacker Neuson will leverage its manufacturing and product development capability to produce Caterpillar mini excavators in the under 3-ton category. Caterpillar currently offers three models in this size range. The new model range will consist of up to seven machines, starting with an operating weight of 0.8 t. The mini excavators will be produced to Caterpillar’s technical and brand specifications and will be distributed and supported via Caterpillar’s global dealer network, with the exception of Japan.

“We know many customers are looking for more options in this size range, and this alliance will give those customers expanded choices to help them grow their business,” said Mary Bell, Caterpillar vice president with responsibility for the Building Construction Products Division. “There is also an ideal cultural fit between Caterpillar and Wacker Neuson, as both companies have a strong focus on developing and supporting world class products. Over the years, Wacker Neuson has developed a strong reputation among our Caterpillar dealers, who have become familiar with Wacker Neuson’s light equipment products, which are available at Cat rental stores,” Bell added.

The two companies recognize the benefits and synergies of utilizing Wacker Neuson’s development and production capacity and distributing machines via the respective sales networks – a move that will improve both companies’ competitive position. The Caterpillar dealer network is a highly respected and powerful sales channel for construction equipment worldwide. Similarly respected are Wacker Neuson’s sales channels, which are focused on light and compact equipment. These include independent dealers, independent and national rental companies and direct sales in selected countries.

By concentrating the manufacture of selected products at Wacker Neuson’s mini excavator production in Linz, Austria, the two companies will leverage joint economies of scale in the manufacturing and development process, while supplying their respective, complementary sales channels with differentiated, competitive machines. “We are delighted at the prospect of what promises to be a long term strategic partnership for both companies as we move forward. We will probably accelerate our investment in a new and highly efficient mini excavator production plant in Hörsching near Linz,” explains Dr. Georg Sick, CEO of Wacker Neuson SE. The partnership will enable both parties to spread the cost of developing and modifying lower-emission products across higher volumes.

Wacker Neuson SE is a global manufacturer of light and compact equipment. With over 30 affiliates and more than 180 sales and service stations across the globe, the company offers an exceptionally broad product portfolio. Manufacturing activities are distributed across three German, one Austrian, two American and one Philippine production site. Almost all products manufactured by the company are branded Wacker Neuson.