| Thu 23 Sep 2004, 10:21 | | BARLOWORLD MORE THAN DOUBLES SIBERIAN CATERPILLAR |
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BARLOWORLD LIMITED - BARLOWORLD MORE THAN DOUBLES SIBERIAN CATERPILLAR
DEALERSHIP TERRITORY
Barloworld Limited
(Registration number 1918/000095/06)
JSE codes: BAW and BAWP
ISIN codes: ZAE000026639 and ZAE000026647
BARLOWORLD MORE THAN DOUBLES SIBERIAN CATERPILLAR DEALERSHIP TERRITORY
International diversified industrial company Barloworld, in partnership with
Wagner International, has concluded an agreement which more than doubles its
already considerable Caterpillar dealership territory in Siberia.
The enlarged territory, which includes the Republic of Sakha (Yakutia), more of
Siberia and the Russian Far East covers an area of 9873m square kilometres -
larger than the United States - and more than eight times bigger than South
Africa.
The area, which constitutes 57% of the land mass of Russia, has road, rail and
air transport infrastructure that needs upgrading, and is rich in minerals such
as nickel, coal, copper, manganese, iron ores, platinum, gold, limestone,
asbestos, mercury and tungsten. It also contains large reserves of oil and
natural gas with abundant natural resources such as timber and peat.
`This development is a tremendous boost for Barloworld, and a tribute to the
group`s expertise and success over the past few years in providing reliable
equipment and first class back-up services in one of the world`s last
underdeveloped frontiers,` says Tony Phillips, chief executive of Barloworld.
`Our current operations in Siberia showed a profit for the first time in the
2003 financial year, and while it will obviously take some time for us to
exploit all the opportunities in the new territory, the prospects are extremely
exciting. This business could become larger than our dealer business in South
Africa.
`We already have 360 Caterpillar machines operating in our original territory in
Siberia, and have firm orders for new machines in our expanded area, worth some
$7,6 million. We see a potential for many more machines and engines as
companies exploit the rich minerals and oil and gas fields,` he says.
The additional business is not expected to have any effect on Barloworld`s
earnings in the current financial year.
Wagner`s chairman Joe Wagner added, `The potential of this venture is
considerable. By combining the strengths and assets with those of Barloworld,
we`ll be in a solid position to effectively serve the needs of the many
Caterpillar users in this enlarged region`. Wagner Equipment Co. has been a
Caterpillar dealer since 1976, with US territories that include Colorado, New
Mexico and far west Texas, and Asian territories that include the country of
Mongolia and areas of southern Siberia. Wagner has approximately 1300 employees
worldwide. They have built a solid reputation of excellence in all facets of
their business.
`Caterpillar`s global dealer organisation is one of our most treasured assets
and a major contributor to the added value of our products and services,`
commented Robert Drooglever, General Director of Caterpillar SARL Moscow
representative office. `Our independent dealers are more than just sales
organisations. They provide expert assistance in the selection and application
of machines, engines and generator sets, operator training, service for products
throughout their life, investment in parts inventories, facilities, service
trucks, information technology, financial offerings to meet the market
requirements. CIS dealers are young, aggressive and rapidly growing
organisations. The partnership of Barloworld Sibir and Wagner Siberia will allow
the new dealer to leverage the investments that have been made and is additional
evidence of the sustained progress and effort that CIS dealers are making on
their way to providing `First in Customer Value`.`
As part of the new arrangements, Barloworld has relinquished its Caterpillar
dealership in Bulgaria. The company`s original entry into Bulgaria in 1991 gave
it its first foothold in the East European markets.
Barloworld first entered the South-Western Siberian market in 1998 - and little
more than a year later it signed a new dealer agreement which more than doubled
its operational territory.
Says Lester Day chief executive officer of Barloworld Equipment, ` Currently, we
operate out of five regional centres and employ 87 people. The new territory
will add six centres and initially we will employ another 57 people. Most of
these will come from Wagner Siberia; others from the Russian Far East. The
regional general director will be Tony Diggeden.`
Barloworld is a diversified industrial company founded in 1902. We have
operations in 34 countries around the world and approximately half of our 25 000
people are in South Africa. We offer our global customer base business solutions
backed by leading industrial brands, supported by service, relationships and
attention to detail. These include both rental options and the sale of products
and services. We operate under a philosophy of Value Based Management which
focuses on creating sustainable value for all our stakeholders. We have been a
Caterpillar dealer for 77 years
About Caterpillar
For more than 75 years, Caterpillar Inc. has been building the world`s
infrastructure and, in partnership with its worldwide dealer network, is driving
positive and sustainable change in every continent. With 2003 sales and revenues
of $22.76 billion, Caterpillar is a technology leader and the world`s leading
manufacturer of construction and mining equipment, clean diesel and natural gas
engines and industrial gas turbines. More information is available at
www.Cat.com.
Ends
Released on behalf of Barloworld Limited by Westcom Public Relations. For
further information contact Lester Day, Chief Executive Officer of Barloworld
Equipment on +27 11 301-4000 email: lday@barloworld-equipment.com.
VISIT THE BARLOWORLD WEBSITE: www.barloworld.com
Date: 23/09/2004 10:15:07 AM
Produced by the JSE SENS Department
