Engine Technology: Cat C2.2 an expanded compact lineup provides complete certification coverage

Industrial Engine Power 2008 Caterpillar Report Vol. No. 10 1 Page 2: COVER STORY Caterpillar and Miller partner for portable power Cat C1.5 and C2.2 engines power diesel engine-driven welder/generators 4 6 7 In this issue OEM Spotlight: Atlas Copco powers its new XAS 185 portable compressor with a Cat C2.2 engine. Engine Technology: Cat C2.2 an expanded compact lineup provides complete certification coverage Product Support: Caterpillar ISD program is a single-source service with big advantages Published on behalf of Caterpillar Inc. and your Caterpillar Dealer by Cygnus Business Media Inc., P.O. Box 803, Fort Atkinson, WI 53538-0803. Spring 2008, Vol. 10, No. 1. CAT, CATERPILLAR, their respective logos, ACERT, "Caterpillar Yellow" and the Power Edge trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. Form Number: LEDH8153

OEM Spotlight Caterpillar and Miller partner for portable power Cat C1.5 and C2.2 engines power diesel engine-driven welder/generators. Portable power is a necessity in all parts of the world and Miller Electric Manufacturing Co. has its share of the market. As a leading manufacturer of arc welding and cutting equipment, Miller is continually introducing new products, technology and innovations. Staying ahead is the name of the game. As a company, we work hard to stay ahead, not just keep up, with what our customers want, says Joe Gitter, The Miller PRO 300 was a common sight on the Cheyenne Plains Pipeline tie-ins, earning the respect of the welders that used the welder/generator for its stick welding characteristics. product manager for Miller industrial engine-drive products. customers choice Our business and choice of engine are mainly customer driven, explains Gitter. Caterpillar engines are popular with our customers because they are familiar with Caterpillar equipment and know they can always count on the Cat dealer network for service. The classic application for Miller engine-driven welder/generators is a construction site where the welding or cutting of metal structure is required. Typical Miller customers include contractors, pipeline welders, rental houses, oil and gas and mining operations that utilize Miller s welder/generators to build, maintain, erect, demolish and/or repair structures. Miller engine-driven welder/generators are working where line power is not available. We are worldwide and there s not a region we don t touch, says Gitter. Two very satisfied Miller welder/ generator customers include: Nordcap Steel Docks and Homes: This Ontario-based steel dock builder works year-round in the best and worst of Canadian weather conditions. When the lakes freeze over, Nordcap brings its supplies in on sleds. At other times, they work from one of their barges, which are portable shops that carry everything necessary to complete a job. The Nordcap crew appreciates the Miller PRO 300 welder/generator s Cat C1.5 engine, which is rated at 22 hp (16.4 kw) at 1,800 rpm. Providing 10,000 kw of generator power, the PRO 300 has enough power to run grinders, chop saws, microwaves and, most importantly, allows Nordcap to achieve two high-quality arcs from one welder/generator, cutting fuel use in half and saving room on the barge. Cheyenne Plains Pipeline: Cheyenne Plains Gas Pipeline Co. constructed a $425 million natural gas pipeline from just south of Cheyenne, Wyo., to Greensburg, Kan. Providing an outlet for the growing supply of Rocky Mountain natural gas to markets in the Midwest region of the United States, Cheyenne Plains transports up to 1.7 billion cu. ft. (48 million cu. m) of natural gas per day enough energy to power about 10 million homes. While the rest of the world has used Miller welder/generators on pipeline projects for decades, this wasn t the case in the North American market. This was one of the 2 Industrial Engine Power Report spring 2008

The PRO 300 welder/generator, powered by a Cat C1.5, takes up minimal space on a Nordcap barge, leaving more room for materials and other machines. At a cost of more than $200 per hour in lost labor if equipment malfunctions, the crew of Nordcap appreciates the reliability of the C1.5 engine, in all weather conditions. PRO 300 Big 40 first North American pipeline projects to utilize a majority of Miller brand welder/generators, and they came through with flying colors. The efficient design of the machine enabled it to produce a 410-amp weld output with a 22-hp (16.4 kw) Cat C1.5 engine that used almost half the fuel of a DC generator. Considering that the average pipeline welder in the United States welds about 1,000 hours per year (as measured by the engine drive s hour meter), and that U.S. diesel prices are several dollars per gallon, the difference adds up. The PRO 300 uses, conservatively, 40% less fuel than a DC generator, creating a savings of hundreds of dollars per year. for the toughest jobs Caterpillar industrial engines are a relatively recent choice for Miller. The company displaced a competitive engine in its popular Big 40 welder/generator with the Cat C2.2 (then a Cat 3024C) in 1999. The other engine manufacturer was not keeping up with EPA emissions requirements, says Gitter. We need an engine manufacturer that keeps up with changing emissions requirements as well as our customers demands for performance and reliable service. We evaluated many different engine manufacturers and Caterpillar was a natural fit. Service was available, performance was excellent, and the engine was smooth, quiet and fuel-efficient. That positive first Caterpillar purchase experience led to another: the Cat C1.5 in the PRO 300 welder/generator. While the Big 40 was an existing product, the PRO 300 was built from the ground up utilizing Caterpillar power (first the Cat 3013C and now the Cat C1.5). We took the change in emissions requirements (Tier 3/Stage IIIA) as an opportunity to make product enhancements for our Big 40 and PRO 300. Those enhancements include engine maintenance displays such as low fuel shutdown, low oil pressure, high coolant temperature shutdown and engine oil change interval countdown. Updating the welder/generators with Tier 3/ Stage IIIA-compliant engines has been a nonissue, according to Gitter. We experienced no design modifications, he explains. The Cat Tier 3-compliant engines were an easy transition for us; they were a drop-in fit. But just buying a good engine isn t enough for Gitter. I don t want to simply purchase an engine, install it and have it perform that s a given. For us, it has to be more of a partnership. Caterpillar has provided that partnership through its worldwide dealer network. Caterpillar has service and maintenance capabilities in all regions around the world, and as long as service is available our customers are happy. No slowdown in sight Business continues to boom for Miller. As oil and gas prices continue to rise, so does the demand for diesel-driven welder/generators. Miller is also gaining market share worldwide. As long as our customers demand Cat engines in our welder/generators, we will continue to offer them in our products, concludes Gitter. Our customers are very happy with the two Cat engines we are currently utilizing, and we plan to continue to offer this product family to meet their needs. Industrial Engine Power Report spring 2008 3

XRVS 1000 OEM Spotlight XAS 185 CATERPILLAR AND ATLAS COPCO STRENGTHEN A strong partnership Atlas Copco, a world leading provider of industrial productivity solutions, has continued its relationship with Caterpillar, Cat dealers and Caterpillar OEM Solutions by strengthening its presence in numerous markets, including the rental market, with portable compressors powered by Cat engines. We are looking forward to this continued relationship, says Attila Madarasz, Atlas Copco product marketing manager for compressors in North America. Madarasz operates out of the company s Rockhill, S.C. manufacturing facility. This partnership reinforces our domestic and global presence in these markets. Jim O Brien, Atlas Copco worldwide key customer manager, agrees. O Brien operates out of the company s Antwerp, Belgium manufacturing facility. This partnership validates the confidence that Atlas Copco and Caterpillar have in each other, he explains. We are willing to put our names side by side in front of customers to promote our businesses as partners. Atlas Copco is organized into three separate, yet integrated business areas, each operating through several divisions. Compressor Technique is headquartered in Belgium; Construction and Mining Technique, and Industrial Technique, are headquartered in Sweden. As a company, Atlas Copco employs more than 25,000 people and operates in 150 global markets with products and services ranging from compressed air and gas equipment, generators, construction and mining equipment, industrial tools and assembly systems, to related aftermarket and rental. The Portable Air division of Atlas Copco s The new Atlas Copco XAS 185 portable compressor provides 185 cfm (87.3 l/s) at 100 psi (689.4 kpa) and uses a Cat C2.2, rated at 49 hp (37 kw) at 2,750 rpm. The XAS 185 will soon be available in Cat Rental Stores. Compressor Technique group has manufacturing plants in the United States, Belgium, partnered with worldwide Cat Rental Stores. It s outdoor power equipment markets, Atlas Copco Germany, Brazil, India and China. newest compressor, the XAS 185, powered by Three goals for the Portable Air division a Cat C2.2 will soon be available in Cat Rental this year include: to become the standard for Stores and through Atlas Copco distributors. the rental industry by offering a total solutions Sixty-five percent of our compressors are package; to offer the best product to customers based on minimal total cost of ownership; Atlas Copco national sales manager for com- used in the rental market, adds Alan Kurus, and to offer the best service through rental in pressors. And of those compressors, more the niche market of industrial rental. than 80% sold in the United States are within Caterpillar is helping Atlas Copco meet its the range of the XAS 185 [185 cfm (87.3 l/s) goals with industrial engine solutions ranging at 100 psi (689.4 kpa)] and the XAS 375 [a from the Cat C2.2 to the Cat C18 ACERT. new compressor in the prototype stage; powered by a Cat C4.4]. This is a saturated and the rental niche competitive market, and having quality engines According to Madarasz, who is responsible for our customers to choose from gives us an for compressed air and gas equipment in North edge on our competition. America, the compressor rental market has shifted in the last 15 years. a long-standing PARTNERSHIP In many industries we serve, it s often more The Portable Air sector of Atlas economical to rent than to own, he explains. Copco s Compressor Technique group To meet the needs of Atlas Copco customers has been using Cat engines in its portable in the construction, turf care, agricultural and compressors for many years. The sector 4 Industrial Engine Power Report spring 2008

currently relies on numerous models of Cat engines: Cat C2.2, C4.4, C6.6 ACERT, C7 ACERT, C9 ACERT, C13 ACERT and C18 ACERT. Cat engines are an option on compressors with ratings less than 500 cfm (236 l/s). Cat engines are standard on compressors with ratings greater than 500 cfm. We standardize on Cat engines in our larger compressor units because of ease of installation, performance criteria, global support and customer acceptance, says Kurus. Our customers must have service wherever they are. The worldwide Cat dealer network provides that high level of service and parts support our customers need, notes Gathuru Mburu, Atlas Copco global product manager. Mburu operates out of Antwerp, Belgium. The reliability of the Cat engine is also excellent. We require a power margin for cold weather starting, high altitude and high-ambient temperatures. Cat engines perform better in all these conditions. On the smaller compressors, Atlas Copco has utilized the C6.6 ACERT and is now developing and testing two additional portable models, the XAS 185 and XAS 375, with Cat C2.2 and C4.4 engines. Our industry is leaning toward the lightest and smallest compressor for the performance, says Madarasz. We are always looking for the smallest footprint engine that delivers the proper performance ratings. Caterpillar has done a good job of offering engines that are smaller and lighter, yet still powerful. While we look for the smallest footprint in an engine, confirms Kurus, we also look for 10% to 15% reserve power. Cat engines have the smallest footprint with the most appropriate power margin. A few examples: The XAS 185 compressor is rated at 185 cfm (87.3 l/s) at 100 psi (689.4 kpa). Its Cat C2.2 engine provides 49 hp (37 kw) at 2,750 rpm plenty of portable power for applications in the landscaping, irrigation and construction markets. The XAS 750 rotary screw compressor is designed for heavy-duty environments such as installing fiber optic cables or powering a combination of pneumatic tools like rock drills or hammers. Powered by a Cat C6.6 ACERT, with ratings of 200 hp (149 kw) at 2,200 rpm, the XAS 750 provides 750 cfm (354 l/s) at 100 psi (689.4 kpa). The XRVS 1000 is a high-volume compressor that provides 974 cfm (460 l/s) at 365 psi (2516 kpa). Its Cat C13 ACERT engine operates at 426 hp (318 kw) at 1,600 rpm and is utilized mainly in high-pressure drilling applications. looking to grow market share There are thousands of different applications for portable compressors, and within each application, each has specific requirements, says Madarasz. It s important to evaluate the current and future markets, and either redesign or design a new product to meet the needs of a changing industry. We pride ourselves on being on the forefront of technology, and becoming an Allied Vendor for the Cat Rental Program is just one example of this commitment. The Caterpillar organization is very easy to work with, he concludes. We provide them with our requirements and they develop a solution. Caterpillar handles it for us so we can concentrate on what we do best: building compressors. XAS 750 Caterpillar OEM Solutions and Atlas Copco Construction & mining technique group The Atlas Copco Construction and Mining Technique group is divided into seven divisions: Underground Rock Excavation, Surface Drilling Equipment, Drilling Solutions, Secoroc, Construction Tools, Geotechnical Drilling and Exploration, and Rocktec. The Drilling Solutions division is a main customer of Caterpillar OEM Solutions, which supplies this Atlas Copco sector with custom track systems ranging in HEX size from 325 to 385. The Drilling Solutions division of Atlas Copco has been purchasing Cat engines and Cat custom track systems for its blast hole drill models for many years, according to George Freeman, Atlas Copco commodity manager. The first complete track system was supplied by OEM Solutions in the late 1970s to the current Atlas Copco production facility in Garland, Texas. Listening to our customers and providing them complete solutions, when and where they need it, can t be overstated, says Bill Hillman, OEM Solutions major accounts manager. This close partnership has resulted in OEM Solutions designing and producing custom track arrangements for numerous blast hole drill models, including the DM30 (Cat 320L track), DM45 (Cat 325L track), DM-L (Cat 330 and 330L tracks), PV275 (Cat 345SL track) and PV351 (Cat 385 track). Cat engines in these models range from Cat C15 ACERT, C18 ACERT, C27 ACERT and C32 ACERT. Special features of the Cat track systems include: Track frames with oscillation mounts Custom final drives and hydraulic motors to provide higher drawbar and quick-disconnect feature for towing Longer track frames with more bottom track rollers to provide better stability and increased load carrying capacity Mining today is blasting, notes Freeman. Our customers are requesting more and more Cat engines and Cat tracks for our drills because of the worldwide recognition and serviceability of Caterpillar products, for both the engine and the tracks. Appreciating the GLOBAL benefits The Surface Drilling division of Atlas Copco s Construction and Mining Technique group is also utilizing Cat engines in its small, medium and large surface drill rigs. From the C7 ACERT to the C15 ACERT, Cat engines are a good fit for our surface drill rigs, which are mainly used in construction and open pit mining, explains Thomas Hallmén, strategic purchasing manager for Atlas Copco Surface Drilling Equipment, based in Örebro, Sweden. One example is the ROC D7/D9 RRC crawler drill rig, powered by a Cat C7 ACERT and rated at 225 hp (168 kw) at 2,200 rpm. Not all of our customers are located in high-tech areas of the world, yet they are still able to receive excellent service from the worldwide network of Cat dealers. Being the global company that we are, we and our customers appreciate the top Industrial performance, parts Engine and service Power availability Report of the Cat spring service network. 3 2008

ENGINE TECHNOLOGY Cat C2.2 An expanded compact lineup provides complete certification coverage. Anew 2.2-liter compact diesel engine rating has just been added to the Caterpillar lineup of compact engines. This new C2.2 Turbocharged Aftercooled (TA) rating is 66 hp (49.2 kw) at 2,800 rpm. As the third rating for the C2.2 engine, the TA rating is just one of numerous Cat compact engine model ratings available to customers in the agricultural, construction, turf care and outdoor power equipment markets. The Cat C2.2 is a 4-cylinder engine available in naturally aspirated, turbocharged and turbo aftercooled ratings: C2.2 41.6 to 51.0 hp (31 to 38 kw) at 2,200 to 3,000 rpm C2.2 (T) 53.3 to 61 hp (39.8 to 45.5 kw) at 2,600 to 3,000 rpm C2.2 (TA) 66 hp (49.2 kw) at 2,800 rpm compact engines are ready for the future Including the three C2.2 ratings, Cat compact diesels now cover the power range from 11 to 83 hp (8.2 to 62 kw) with eight modern engines that meet existing Tier 3 and Tier 4/Stage IIIA emission standards for North America and Europe and are designed as solid core engine platforms to tackle future emissions requirements. The engines in the Cat compact diesel product line are: Model Power OutpuT rpm C0.5 11 to 13.7 hp (8.2 to 10.2 kw) 2,800 to 3,600 rpm C0.7 16.3 to 20.5 hp (12.2 to 15.3 kw) 2,800 to 3,600 rpm C1.1 18.4 to 28.2 hp (13.7 to 21 kw) 2,200 to 3,400 rpm C1.5 27.8 to 40.2 hp (20.7 to 30.0 kw) 2,200 to 3,000 rpm C1.6 33 to 35.5 hp (24.6 to 26.5 kw) 2,800 to 3,000 rpm C1.7 33.2 to 34.8 hp (24.7 to 26 kw) 2,400 to 2,600 rpm C2.2 41.6 to 66 hp (31 to 49.2 kw) 2,200 to 3,000 rpm C3.4 63 to 83 hp (47 to 62 kw) 2,600 rpm This expanded product lineup provides complete certification coverage. Existing models have been redeveloped to meet the new legislation and additional models have been introduced to provide greater coverage and flexibility. The C2.2 provides increased customer value by offering these new features and benefits: Improved electronic-controlled governing. A new governor design incorporates optimized lever ratio for improved engine response, improved tolerance and manufacturing of governor components. Significant noise reduction of more than 2 db(a). Noise improvement is achieved through reduced fan speed, cylinder block redesign, timing case stiffening and low noise fan options. More efficient cooling and high/low fan position options. The C2.2 (TA) builds on the success of the Tier 2/Stage II C2.2 (T) model, all in the same engine package size. This new turbocharged and air-to-air after-cooled engine increases the power of the C0.5 to C2.2 compact engine range by 10%. Redesigned cylinder head coolant channels provide more even flow of coolant and fewer hot spots. The top tank temperature has also been increased from 110 to 112 degrees C (230 to 233.6 F). A lower fan position is available for space constrained installations. SAE PTO fitting with increased torque capability. The redesign of the governor assembly and the optimization of fuel and combustion systems have improved visible smoke emissions over Tier 2/Stage II at start-up and transient conditions. Easier routine servicing. A new timing case oil filler position option makes routine servicing much quicker and easier, especially in space restricted applications. the caterpillar commitment The C2.2 rounds out our line of compact diesels, said Cat marketing manager Mike Reinhart. By filling a niche at the high end of the power spectrum while still offering the benefits of a very light, compact package, the C2.2 supports the continuing need for fuel-efficient, reliable diesel power in small and mid-size equipment in the construction, agricultural, turf maintenance and outdoor power equipment markets. It gives our customers the ability to deliver big machine performance in a smaller, more efficient package. Much of the C2.2 s compact design comes from a new, sidemounted turbocharger and from a redesigned cooling system which permits use of a smaller radiator. The new C2.2 engine retains the low cost of ownership features common on all of the engines in the Cat compact lineup, including a 500-hour service interval, and single-side access for all service functions. These engines are compact, concludes Reinhart, but they re Cat engines in every sense of the word. 6 Industrial Engine Power Report spring 2008

PRODUCT SUPPORT Industrial service distributor program Caterpillar ISD program is a single-source service with big advantages. Thousands of new Caterpillar engines have been placed in industrial applications all across North America in the last few years. Caterpillar and Cat dealers are looking to partner with worldwide OEM dealers to provide an extended network of valuepriced product support services for these engines. This extended network of support specialists proudly call themselves Industrial Service Distributors (ISD). The purpose of the ISD program is to ensure customer satisfaction by developing a strong and responsive network that promotes and specifies Cat engines and provides quality support services. Simply stated: Your customers will receive timely, quality service for their entire machine (engine and all) from one reliable source: YOU, the OEM dealer. BOUNTIFUL BENEFITS As an OEM dealer, you want to provide the best possible products and service to your customers. It s just good business sense. Using Cat engines is a smart choice and now it s an even more powerful choice. Whether your equipment works in construction, forestry, agriculture, material handling or another demanding industry, Caterpillar is now offering you, the OEM dealer, the opportunity to become a certified service outlet for the Cat engines you use in your equipment. The singlesource service you ll be able to provide will benefit your customers. When you join the Caterpillar Industrial Service Distributor (ISD) program, your technicians will have access to training, tooling and inventory of Caterpillar parts. As a result, you ll experience: Increased product support revenues Enhanced brand loyalty for your equipment Improved customer satisfaction Increased OEM sales The marketability of being a Caterpillar approved service location PROVEN PROGRAM TAILORED Caterpillar is looking for partners with solid reputations who are in it for the long haul. Once approved, you can choose from three levels of involvement from providing routine maintenance to performing warranty work or complete overhauls. The idea of an extended network of Cat dealers isn t a new one. The TEPS program has been successful in the Cat on-highway truck and marine markets for more than 30 years and currently consists of more than 1,000 active dealer locations in North America. The industrial ISD program is based on the successes of TEPS, but has been customized to meet you and your customers needs. The ISD program covers a wide range of Cat industrial engine models and consists of three levels of dealers: Level 1 Basic Maintenance Service. These ISDs have the ability to change oil, filters, belts, coolant and perform other basic maintenance as required by the Cat Maintenance Guide. They can perform warranty and minor repairs and replacement of peripheral components and rotating electronics and water pump with standard tooling as well as market selected Cat parts over a parts counter. (Generally about 80% of ISDs qualify for this level.) Level 2 Full Maintenance Service. These ISDs are authorized to perform basic maintenance service plus electronic diagnosis capability, inspection service and certain warranty and repair work on peripheral parts and noncore components. They will utilize some specialized tooling, as well as market a larger selection of Cat parts over a parts counter. (Generally about 15% of ISDs qualify for this level.) Level 3 Full Service. These ISDs are authorized to perform complete engine repair and overhaul service and warranty work as specified in the Cat Service Warranty Guide with specialized tooling. They will also market a larger selection of Cat parts over a parts counter. (Generally about 5% of ISDs qualify for this level.) For more information about applying for the Cat ISD program, contact your local Cat dealer. Industrial Engine Power Report spring 2008 7

FOR ANY TOUGH JOB, IT S NOT A TOUGH CHOICE. Cat power always fits. Whatever your application, from 10 to 6,500 hp, Cat industrial engines work as hard as you do. And our uncompromising product support means you re never alone. For outstanding performance and flexibility, low emissions Cat industrial engines deliver the long life and economy you have come to expect from Caterpillar. For more information, call or visit your local Cat dealer. www.cat-industrial.com 2008 Caterpillar. All rights reserved. CAT, CATERPILLAR, their respective logos, Caterpillar Yellow and the power edge trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. PRSRT STD U.S. Postage PAID Ft. Atkinson, WI Permit No. 70