Caterpillar to Remanufacture Wind Turbines

Nov. 10, 2011
10-year agreement with Vestas valued at $948 million

Caterpillar Inc.'s remanufacturing arm will be the primary service provider to as many as 44,500 wind turbines following a new, 10-year agreement between Caterpillar and Vestas Wind Systems. Vestas estimated the value of the service contract at $948 million.

Vestas claims to be the world’s largest manufacturer of wind turbine systems. It has installations in 66 countries.

According to a statement, Vestas entered the agreement to ensure quality remanufacturing services and competitive prices for its customers. "The agreement with Caterpillar shows Vestas' commitment to creating high-quality and cost-competitive solutions while at the same time doing it in the most sustainable way possible,” according to Phil Jones, president of Vestas' Spare Parts & Repair division.

"Caterpillar is a global leader in remanufacturing, and we're excited to be providing those services to Vestas," stated Greg Folley, vice president of Caterpillar’s Remanufacturing & Components Division (Cat Reman.) Folley also said the agreement is an example of Caterpillar's focus on sustainable development and efficient use of resources.

Cat Reman operates as a “one-for-one” exchange service: products at the end of their service life (e.g., wind turbine components) are exchanged for comparable units, and Cat Reman then reconditions the worn units to "new" condition.

The agreement covers minor components and sub-component repair in support of Vestas' Spare Parts & Repair internal repair sites. Cat Reman’s existing facilities, equipment, and suppliers will be made available for the service, and remanufacturing will begin in Caterpillar's North America operations. Facilities in Europe and Asia will be included later.

Caterpillar said its cost-competitive remanufacturing services would allow Vestas’ wind turbine components to meet quality and reliability standards in an environmentally responsible way.

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