Caterpillar To Open New Parts Distribution Facility in South Africa.

Caterpillar Inc (NYSE: CAT), recently announced plans to consolidate its parts distribution centers in Isando, South Africa into a new parts distribution facility near Johannesburg at about 20 kilometers (12 miles) from the existing centers.

The new facility is expected to become operational in the second quarter of 2017. The consolidation provides several advantages including enabling the company to work more efficiently, while increasing the capability to provide unmatched parts availability to customers in Africa.

“This investment in our new and more efficient 60,000 m² (645,000 square-feet) facility demonstrates our deep commitment to Caterpillar customers in Africa. We are positioned to deliver the best solution to satisfy customer service needs now and far into the future. It is a win-win for our customers, our dealers in the region and Caterpillar.

“Caterpillar and our dealers know that getting replacement parts to our customers, such as a new filter or undercarriage, as quickly as possible is extremely important to reduce idle time and save money,” said Bonnie Fetch, Cat Parts Distribution Director.

“Bringing our parts distribution under one roof in South Africa and expanding our parts distribution capabilities clearly illustrate South Africa’s importance as a hub for our business in the Southern African countries. This will further improve our service to customers throughout the region,” added Chris Monge, District Manager for Southern Africa based in Johannesburg, South Africa.

The consolidation is part of the previously announced plan of Caterpillar, its independent dealers and the Caterpillar Foundation to invest more than $1 billion in countries throughout Africa over five years.

This is yet another step in a long and rich Caterpillar history in Africa. The first Cat dealer outside of the United States was in Tunisia in 1926, followed shortly by Barloworld in South Africa. The dealer network is present in almost every African country, serving customers who help build and power communities and, ultimately, improve lives.