23.08.2004

Terex reach agreement with CAT

Terex Mining has reached an understanding with Caterpillar Inc. that will allow Terex to distribute and support the Terex O&K line of hydraulic excavators and mining shovels through Caterpillar's independent distributor network. Terex will continue to sell O&K through its own distributor locations and support its existing dealer agreements. But will also focus on utilizing the strength of the Caterpillar dealer network particularly in those areas where Caterpillar has strong coverage and Terex does not.

Vertikal Comment:

This agreement or “Understanding” is significant in that it builds a relationship between CAT and Terex and shows a pragmatism on the part of both companies which compete in several product areas. Terex also has clearly defined plans to win a greater slice of the construction equipment market.

When Terex took over Genie, the major supplier of access equipment to the CAT rental stores, many observers assumed that CAT would encourage its rental franchisees to move away from Genie. Instead CAT issued a press release at the time supporting the continuation of the Genie brand as a preferred supplier to CAT rental stores, and, as this latest announcement shows, if anything the relationship is growing rather than waning.