Caterpillar Inc. (NYSE: CAT) and Vestas Wind Systems (NASDAQ: VWS) have reached a 10-year, global agreement to remanufacture wind turbine components. Vestas, of Aarhus, Denmark, is the world’s leading wind turbine manufacturer, with an installed base of 44,500 turbines.

Vestas has chosen to enter this agreement to ensure remanufacturing services of high quality and at a competitive price for its customers. With the agreement, Caterpillar will supply Vestas with cost-competitive remanufacturing services that will enable its components to meet the highest quality and reliability standards, while at the same time reducing the impact on the environment. The relationship with Caterpillar will be managed by Vestas’ Spare Parts & Repair Business Unit and will cover the remanufacture of minor components and sub-component repair in support of Vestas’ internal repair sites.

“Caterpillar is a global leader in remanufacturing, and we’re excited to be providing those services to Vestas,” said Greg Folley, Caterpillar vice president with responsibility for the Remanufacturing & Components Division. “Our tradition of quality and continuous improvement will serve Vestas customers well. This agreement is also an example of Caterpillar’s focus on sustainable development: by applying our technology and innovation to other products, we use our resources more efficiently, have less impact on the environment and support our customers at the same time.”

Cat Reman will use its global presence and expertise to remanufacture Vestas wind turbine components using its existing facilities, equipment and suppliers. Remanufacturing will begin in Caterpillar’s North America facilities followed by facilities in Europe and Asia.

“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.  We believe that is what makes our customers satisfied and what creates a business model where the driver is the long-term development”, says Phil Jones, President of Vestas’ Spare Parts & Repair division.

Vestas Spare Parts & Repair is at the core of Vestas’ Service business. The global wind turbine manufacturer forecasts the total Service operations to become a EURm 700 business by the end of 2011.

Remanufacturing operations return end-of-life components to their original “same-as-when-new” condition in terms of reliability, durability and performance. It reduces waste, minimizes the need for raw materials to produce new parts and supports both Caterpillar and Vestas in providing customers with the lowest life cycle cost over the life of a product.