Caterpillar Announces Entry into TBM Business with Acquisition of LovatAt the Conexpo construction equipment exhibition in Las Vegas last month, Caterpillar outlined long-term growth expectations, with plans to invest about USD2.3 billion in capital expenditures this year and step up R&D efforts to expand globally. In January, the firm completed the purchase of the remaining shares of Shandong SEM Machinery, a wheel loader manufacturer in China. On 27th March, Caterpillar has agreed to spend USD500 million to increase its share in Shin Caterpillar Mitsubishi (SCM) from 50% to 67%. The company will be named Caterpillar Japan. The Japanese joint venture was set up between Caterpillar and Mitsubishi Heavy Industries in 1964 to manufacture and sell Caterpillar-branded equipment in Japan.In another decisive move, Caterpillar and Lovat announced on 2nd April, 2008 that Caterpillar has acquired 100% of Lovat, a well-known leading global manufacturer of tunnel boring machines used in the construction of metro, railway, road, sewer, water main, penstock, mine access, high voltage cable and telecommunications tunnels. The financial details of the acquisition are not being disclosed. Rick Lovat, president and CEO of Lovat, will join Caterpillar's global mining division and will have responsibility for growing the tunnel boring business within Caterpillar. Lovat has a long family history with the industry. His great-great-grandfather, great-grandfather and great-uncles were all involved in the tunnelling industry. The company was founded in 1972 by Rick's father, Richard Lovat.Lovat customers will benefit from the strength of Caterpillar's global purchasing organization, from its research and development initiatives, Caterpillar's global reach and its experience in large-scale manufacturing processes. “This acquisition is Caterpillar's entry into the rapidly expanding tunnel boring machine business, and it represents an excellent strategic fit for our companies and the customers we serve around the world," said Stu Levenick, Caterpillar group president."Lovat customers are already familiar with seeing Caterpillar products working as support machines at tunnel boring projects, and we intend to leverage our global business with continued investment in the Lovat product line and in the tunnel boring business," said Chris Curfman, Caterpillar vice president with responsibility for mining and underground products. “Just like Caterpillar's machines and engines, Lovat's tunnel boring machines have a reputation for durability, reliability and performance while working in some of the most demanding applications. Our customers should look forward to the integration of Lovat into Caterpillar," Lovat said.Caterpillar Global Mining supplies support equipment to the surface mining sector and is the world's leading provider of production, support and technology solutions for surface and underground hard-rock mining. With 2007 sales and revenues of USD45 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. Visit www.cat.comLovat specialises in the custom design, manufacture and technical support of tunnel boring machines utilised in the construction of circular tunnels from 75 cm to 15 m in diameter. The company offers extensive experience and advanced technology solutions for worldwide tunnelling projects. With Lovat Europe and Lovat China, the company has today more than 400 employees. Visit www.lovat.com 15/08.