Caterpillar suspends manufacturing in Russia

Caterpillar has issued a statement on Russia and the Ukraine in which it said it was suspending manufacturing operations in Russia and making a significant financial donation toward relief efforts in Ukraine through the Caterpillar Foundation.

The company’s statement said:

“We are deeply saddened by the tragic events continuing to occur in Ukraine and hope for a peaceful resolution to the crisis. Through the Caterpillar Foundation, we are donating more than $1 million to support both urgent and long-term needs of the Ukraine humanitarian crisis.

“We are complying with all applicable laws and evolving sanctions, while remaining focused on our employees, dealers and customers.

“Operations in Russia have become increasingly challenging, including supply chain disruptions and sanctions, and we are suspending operations in our Russian manufacturing facilities.

“We recognize this is a time of incredible uncertainty for our valued employees, and we will continue to look for ways to support them.”

Caterpillar has been operating a fully owned manufacturing facility in Tosno, near Saint Petersburg, since March 2000. The Tosno plant is manufacturing two models of off-highway mining trucks, two models of excavators and components for machines and equipment, which are exported to our factories in Europe.

Caterpillar Distribution, LLC was founded in 2007 and maintains a replacement parts distribution center near Moscow. The company also maintains a Caterpillar Financial operation in Moscow, which offers financing and leasing services, mainly to Russia, Kazakhstan and Ukraine.

The Caterpillar Foundation’s donation will support the global Red Cross network response to the Ukraine Humanitarian Crisis, Project Hope, and the Center for Disaster Philanthropy. Donations will help support relief efforts such as water, food, clothing, hygiene sets, blankets, fuel for heating, medical supplies and housing support in Ukraine and surrounding countries.

“As the fighting intensifies in Ukraine, so does the dire situation for impacted families,” said Gail McGovern, president and CEO of the American Red Cross. “We cannot thank the Caterpillar Foundation and Caterpillar employees enough for their generous contributions, enabling the global Red Cross network to provide humanitarian relief in response to the Ukraine crisis.”

To amplify the giving, the Caterpillar Foundation is also matching gifts from global Caterpillar and dealer employees as well as U.S. retirees to the global Red Cross network in response to the Ukraine crisis through a 2:1 match. These gifts have surpassed the original match goal and will continue to remain open.

“We are deeply saddened by the tragic events continuing to occur in Ukraine and hope for a peaceful resolution to the crisis,” said Caterpillar Chairman and CEO Jim Umpleby. “Through the Caterpillar Foundation’s platform, we are responding to the urgent humanitarian needs in Ukraine and its neighboring countries. I am proud of the generosity of our employees to support these critical efforts.”