UANI calls on Caterpillar to explain its sale of tunneling equipment in Iran and to disclose its business in Iran

February 4, 2010
FOR IMMEDIATE RELEASE
February 4, 2010
Contact: Kimmie Lipscomb, [email protected]
Phone: (212) 554-3296
 
UANI calls on Caterpillar to explain its sale of tunneling equipment in Iran and to disclose its business in Iran

New York, NY -- United Against Nuclear Iran (UANI) today called on Caterpillar to disclose its business dealings in Iran and to sever all business ties in Iran.  Caterpillar is the latest company to be targeted through the Iran Disclosure Project for failure to disclose its business in Iran.

Caterpillar's subsidiary, Lovat, carries out tunneling projects in Iran, and the Tehran-based Arya Machinery markets itself as the sole distributor of Caterpillar equipment in Iran.  Because of Caterpillar's presence in Iran, UANI is deeply concerned by the misuse of Caterpillar equipment by the Iranian Revolutionary Guard Corps in Iran's LNG and Oil industry and for boring the tunnels that are necessary to hide and protect Iran's nuclear enrichment facilities.

Given the extensive use of Caterpillar machinery in Iran, UANI calls on Caterpillar to clarify the use of its machinery in Iran and to answer the following questions:
  • What steps does Caterpillar take within Iran's closed society to reach assurance that its equipment can, in no way, be used to support Iran's illegal nuclear program?
  • Do Caterpillar's vows of corporate responsibility not apply to state sponsors of terrorism?
  • Does the convenience of a Caterpillar foreign subsidiary making the sales into Iran somehow allow you a clean conscience to accept the profits of such sales?
  • Why has Caterpillar failed to disclose the material risks associated with its business dealings in Iran?
UANI questions the legality of Caterpillar's failure to fully disclose the extent of its business dealings in Iran.  Such failures deprive investors of the transparency and accountability to which they are entitled.  UANI, therefore, has called on Caterpillar to disclose the full nature and extent of its activities in and the inherent risks of doing business in Iran.  In a letter to James W. Owens, the CEO of Caterpillar, UANI President, Ambassador Mark D. Wallace wrote:
 
UANI calls on Caterpillar to clarify, definitively, whether its tunneling equipment or heavy machinery in Iran is used in the development and construction of Iran's nuclear facilities.
 
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UANI calls on Caterpillar to cease doing business in Iran.
 
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We...call your attention to a very serious issue involving deficiencies in your company's public filings, specifically, your company's ongoing failure to disclose any of Caterpillar's activities in, and risks of doing business with, Iran.
 
In the event Caterpillar continues its business operations in Iran and fails to adequately disclose the risks of such business, UANI will pursue appropriate legal action against Caterpillar, will call on the New York Stock Exchange to delist Caterpillar and will assist the many Caterpillar shareholders who oppose Caterpillar's activities in Iran.
 
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Caterpillar's business in Iran must stop and UANI's activists are prepared to take appropriate and legal steps to ostracize Caterpillar for its irresponsible actions related to its machinery sales in Iran. 
 

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