Doosan Buys Bobcat
IR Sells to Doosan, Bobcat Enters Tractor Market with Daedong

The wait is over. After months of parent company Ingersoll Rand (IR) weighing its options to unload or restructure its construction business, IR has come to an agreement to sell Bobcat Co.

The compact equipment manufacturer — famous as the first brand of skid steer — has been sold to Doosan Infracore, the up-and-coming Korean machine magnate.

Not only that, but soon after the sale, Bobcat announced that it had also signed a long-term strategic agreement with Korean manufacturer Daedong Industrial Co. Ltd. to produce a line of Bobcat-branded compact utility tractors. Oddly enough, the two announcements are unrelated — except that both involve South Korean equipment companies.

Ingersoll Rand announced on July 30 that an agreement had been made to sell its Bobcat, Utility Equipment and Attachments business units to Doosan Infracore for cash proceeds of approximately $4.9 billion. Those combined businesses give Doosan considerable machine muscle around the globe. With the purchase of Bobcat and friends, Doosan Infracore takes a position as one of the top seven global construction equipment companies in the world. With Bobcat, it now has one of the best distribution channels in North America for small construction, landscape and rental equipment. For full-year 2006, all of these IR businesses collectively generated approximately $2.6 billion in revenue.

“The sale of Bobcat, Utility Equipment and Attachments represents the last major action to transform our business portfolio to reposition Ingersoll Rand as a diversified industrial company,” said Herbert L. Henkel, chairman, president and CEO at Ingersoll Rand. “We remain focused on driving growth and creating shareholder value through three strategic platforms serving global climate control, industrial and security markets. I am confident that these businesses will deliver consistent financial performance over the long term and across all phases of the economic cycle.”

This sale also includes a slew of manufacturing facilities that span from Gwinner and Bismarck, N.D., to Wujiang, China, and Slane, Ireland. These businesses employ approximately 5,700 people worldwide.

Bobcat revealed its new tractor partnership with Daedong Industrial one day after the announcement of the IR sale (July 31). According to Bobcat, it’s a move intended to expand its No. 1 market position in the compact equipment marketplace.
“This alliance brings together the strengths of two respected and recognized companies,” said David Rowles, president of Bobcat Americas. “By combining the Bobcat global brand, dealer network and service with Daedong’s commitment to compact tractor design and technology, we can provide our customers with the quality compact equipment experience they’ve come to expect from Bobcat. We plan to start offering compact utility tractors to customers later this year.”

The Bobcat project team worked with a team from Daedong to create a compact utility tractor that meets Bobcat-brand expectations. Always ahead of the game, Bobcat already offers its customers five three-point hitch implements: an angle blade, auger, box blade, mower and tine rake. Soon it will offer them an actual Bobcat utility tractor.

Doosan, Daedong, KIOTI and Chaebol - Explained

If you haven’t noticed over the last few decades, South Korea has become one of the world’s strongest economic powers. Today, it boasts the 12th largest economy, a global leader at making electronics, cell phones, ships, cars and equipment, with prominent companies like Hyundai, Kia, Samsung and Doosan leading the way. These conglomerate companies are called "chaebol" in South Korea. Chaebol refers to the country’s largest corporate groups, which are often family-controlled, assisted by government financing and have played a major role in the economy and politics of South Korea since the 1960s.

Doosan is one of the top 10 largest chaebol in Korea, according to 2004 total revenues ($4.5 billion). Since beginning its life as Chosun Machine Works in 1937, Doosan Infracore has become a leading company in the machinery industry of Asia.

Like all chaebol, Doosan dabbles in everything, including publishing, food, household goods, fashion and even a professional baseball team — Korea’s Doosan Bears.

The company started acquiring iron when Doosan took over Korea Heavy Industries (now Doosan Heavy Industrial & Construction) in 2001 and Daewoo Heavy Industries & Machinery (now Doosan Infracore) in 2005. With Bobcat and Ingersoll Rand’s other equipment businesses, the company becomes a force to reckon with in the North American market.
Of course, Daedong Industrial Co. Ltd., located in Daegu, South Korea, is a much smaller corporation, but it’s still been a world leader in the engineering and development of mechanized farming equipment for more than 50 years. Daedong began as an ironworks, producing farm tools in 1947, but quickly became famous for its engines, which has been the basis for its Ag equipment ever since. The company started exporting tractors to the United States in 1985 and today is represented by KIOTI Tractor Division of Daedong-USA Inc.

Daedong-USA Inc. is the U.S. subsidiary of Daedong Industrial Co. Ltd., specializing in the manufacture and distribution of compact tractors and implements. Today, Daedong-USA distributes KIOTI products through more than 250 dealers.
“The quality of the Daedong product line is well recognized by customers as world class,” said Seong-Ki Kim, chief of the international business division for Daedong. “Bobcat and Daedong will achieve high synergy in this business collaboration.”

Michelin Expanding Major Facilities, Investing $350 Million

In the Roman religion, the god of fire is Vulcan. In the French tradition, the god of vulcanization, the specific curing process of rubber involving high heat and the addition of sulfur, would have to be Charles Goodyear, whose tire company claimed the discovery in 1839.

Today, the vulcanized rubber tire gives the world of equipment mobility — from cars to construction machinery. To ensure the world can keep on rolling, Michelin North America is investing $350 million to improve and expand every major manufacturing facility in South Carolina over the next four years.

This latest round of Michelin investments will upgrade all the company’s manufacturing facilities in Anderson, Greenville, Lexington and Spartanburg counties and will add approximately 100 new manufacturing jobs to the company’s 7,850 current employees in South Carolina.

“With increasing competition from Asian imports and high raw material costs, Michelin will remain competitive in North America by continuing to manufacture tires in more efficient operations with skilled professional employees,” said Jim Micali, chairman and president, Michelin North America Inc.
Expansion at some of the affected facilities has just commenced to meet the growing market demand for Michelin tires across several product lines. All of these investments will be accomplished between now and the end of 2011. The newly created manufacturing jobs, representing a net increase after normal attrition and retirement, will be phased in as the expansions progress and new capacities come on line.

“Over the last 30 years, Michelin has invested more than $2 billion in South Carolina with excellent results,” said Micali. “This is our home and we have enjoyed a wonderful relationship with the state over these past three decades. As always, we are grateful to the state legislature for passing the necessary legislation and to county officials for facilitating Michelin’s ability to again expand our business and our investment in the state.”

Michelin established its first modern plant in the United States in Greenville in 1975. Over the past 30-plus years, that presence has grown substantially to include: the company’s North American headquarters; North American research and development headquarters; a 3,500-plus acre test track; headquarters for Michelin Retread Technologies; and TCI Tire Centers LLC; and other tire building facilities.

In addition to employing almost 8,000 South Carolinians spread across 37 of the state’s 46 counties, Michelin currently has 2,650 retirees in the state. More than one-third of the company’s 22,000 employees are based in South Carolina.

Eye Candy
New Getaway Safety 4x4 Eyewear Offers Impact Protection with Style

Usually style points don’t mix with safe operating procedures, but Gateway is changing that perception. Gateway Safety Inc. sees fashionable safety as a way of ensuring a contractor sticks to the rules, by making their safety gear seem cool.

With a rugged, yet stylish design that’s available in several different lens and frame options, the company’s new 4x4 brand of safety glasses only adds extra groove to its extensive line of protective eyewear.

The 4x4 safety glasses are available in three distinctive frame options: Standard, Sport and Style. A sturdy four-sided frame provides lightweight and durable protection with comfort. The wrap-around frame supports the scratch-resistant, dual polycarbonate lenses and features a soft, inset nose piece for additional comfort and a snug fit. Temple’tastic tips relieve pressure behind the ear for long days at work.

“The line of 4x4 protective eyewear is designed for end-users who work in demanding jobsite conditions but desire an upscale, attractive look,” said Matthew Love, vice president of Gateway Safety. “It’s eyewear that is both attractive and comfortable.” For more information, call (800) 822-5347 or visit them on the Web at www.gatewaysafety.com.

Restructured Iveco Motors
Now FPT of North America

In Europe, Iveco is one of the continent’s biggest truck, bus and diesel engine manufacturers. Based in Turin, Italy, the subsidiary of the Fiat Group is a significant player in the medium-duty commercial vehicle and engine markets and is at the top of sales of passenger transports and 3.5-ton light vehicles.

The name is actually an acronym for Industrial Vehicle Corp. Iveco has been trying to introduce its brand strength to the North American market for a few years and the company has now formerly renamed Iveco Motors of North America Inc. to its new name — Fiat Powertrain Technologies of North America (hereinafter referred to as FPT NA). Catchy, ain’t it?

FPT NA is part of the Powertrain sector of the Fiat Group known as Fiat Powertrain Technologies S.p.A. (hereinafter referred to as FPT), which is wholly owned by Fiat S.p.A. Got all that?

Created in March 2005, Fiat Powertrain Technologies S.p.A. is the sector of the Fiat Group including all the powertrain activities previously carried on in: Fiat Auto (Fiat Powertrain); Iveco (Iveco Motors); Centro Ricerche Fiat (CRF); and Elasis (Research and Development).

FPT has restructured its North American offices in Carol Stream, Ill., to align itself for a successful launch of its new brand of engines throughout the power generation, marine and industrial sectors. With its annual output of 2.8 million engines and 2.1 million transmissions, FPT is one of the most significant players in the powertrain sector on a worldwide basis, with sales of $8 billion.

FPT can satisfy almost any powertrain request,thanks to a wide range of products: engines (with a power from 20 up to 1,800 hp and displacements from 1,000 to 30,800 cc); transmissions (covering from 145 to 950 Nm); and applications including automotive (cars, commercial vehicles, trucks, buses and special vehicles), industrial (construction equipment, agricultural machinery and stationary applications), marine (pleasurecraft and workboat) and electric power generation.

Within the Fiat Group, FPT operates globally with dealers in more than 100 countries with the support of 19,000 employees, 16 plants and 10 research and development centers in eight countries.

FPT is recognized for its Cursor Series engine and its NEF family, with 500,000 engines sold for industrial applications, through 2006.

Fiat Powertrain Technologies of North America Inc. offers complete product support and customer service. For more information on FPT, visit www.fptPowertrain.com.

Cat Offers Computer-Based Operator Training for Mini Excavators

In the not-so-distance future, contractors will be trained in the safe cyber worlds of computers. On tomorrow’s jobsites, professionals will travel to work in their hover trucks and foreman will command a crew of robotic workers to complete construction projects on time with mechanical efficiency.

While most of the aforementioned is still science fiction, Caterpillar is at least experimenting with the usefulness of computer-based training with its new Mini Hydraulic Excavator Operator Training Course. The cyber safety course is aimed at helping owners of versatile compact machines prepare and retain a competent operator fleet and protect their investment.
“Finding and retaining qualified operators is one of the toughest challenges faced by contractors today,” said Dan Bruch, North American general construction training manager. “The program incorporates video, sound and a series of knowledge checks to ensure comprehension. We wanted an informative program that would engage the student, even if the individual isn’t accustomed to spending a time at a computer screen.”

The training program covers the fundamentals of daily maintenance, machine controls, safe operating practices and operating techniques for Caterpillar mini hydraulic excavators weighing up to 6 metric tons.

The Cat Mini Hydraulic Excavator Operator Training Course contains both English and Spanish languages narration and text. A computer with a DVD-ROM drive is required. The course is available from any Caterpillar dealer. For more information, customers should contact their local Caterpillar dealer or visit the Cat Web site at www.cat.com.

Sweepstakes Central

Winner Announced for John Deere-NUCA Skid Steer Giveaway When Mike Gallitz of Zenith Tech Inc. went to the World of Concrete in Las Vegas earlier this year, he passed by hundreds of booths. At one of his stops, he was convinced to fill out a form to receive Compact Equipment magazine — giving him a chance to win a brand new John Deere 300 Series skid steer loader.

“Not only did I win something in Vegas, I won a new Deere 317 skid steer,” Gallitz said. “When I walked through the John Deere booth at World of Concrete, I never figured I’d walk out with a great machine like that. I was amazed when they called to tell me the good news.”

Gallitz got a call from John Deere a few months later
following the drawing held on May 15, telling him he had been picked from more than 4,700 entries.
The promotion was sponsored by John Deere and Benjamin Media (publishers of both Compact Equipment and Utility Contractor) to increase membership in the National Utility Contractors Association (NUCA). John Deere has been actively involved with NUCA since the beginning, as one of the association’s charter members in 1964. Gallitz is no stranger to these big construction icons.

He started his career fresh out of high school, going to work as a laborer at Zenith Tech, a Waukesha, Wis.-based civil and heavy highway contractor where he now manages the utilization of the company’s equipment and materials. Having been a loyal customer of Hillboro Equipment, a nearby John Deere dealer, for more than five years, Gallitz says he’s looking forward to using his new 300 Series skid loader for some landscaping or concrete work around his 15-acre property in rural Waukesha.
“At Zenith Tech, we get a lot of work out of our John Deere 310G backhoes, so I’m expecting this skid steer to be rugged and productive,” noted Gallitz. “I own 15 acres and there are plenty of landscaping and other jobs waiting for me there.”
As a result of the John Deere NUCA Membership Sweepstakes, the association’s new membership leads are already being put to good use. The more than 1,000 leads have already been logged into NUCA’s database as non-members. Now any time NUCA staff carries out a non-member mailing, every contact will now be in the loop as “official non-members.”

ASV Prize Winner Update

In February, Richard Longfellow of Geneseo, N.Y., received a new ASV RC-30 rubber track loader as the prize for winning Compact Equipment’s Weekend Warrior Sweepstakes. Upon winning the sweepstakes, Longfellow said that he planned on expanding his part-time landscaping business with the new equipment.

The RC-30 is the world’s smallest ride-on rubber track loader, making it an ideal solution for working in small, confined areas. Since taking possession of his RC-30, Longfellow has completed a number of landscaping projects around his own house, installing pavers and hauling mulch. Longfellow is most impressed with the minimal damage done to his lawn.

“There are no traces of the equipment on the grass,” he said.
As for expanding his part-time landscaping business, Longfellow noticed an immediate demand in his services after receiving his RC-30. Initially — especially from friends and neighbors. He plans to eventually purchase attachments for his RC-30 to increase its versatility. “It’s been a blessing that the RC-30 came about,” he said. “I wouldn’t trade it for the world.”