By James R. Hagerty
An upstart online seller of Chinese construction equipment filed
an antitrust lawsuit on Thursday against Caterpillar Inc. and three
other companies, accusing them of conspiring to thwart the new
venture.
The suit was filed by International Construction Products LLC in
U.S. District Court in Delaware. Along with Caterpillar, the
defendants are the U.S. arm of Japan's Komatsu Ltd, the North
American construction-equipment unit of Sweden's AB Volvo and CAT
Auction Services, owned by Caterpillar and some of its dealers.
Representatives of Caterpillar, Komatsu and Volvo declined to
make any immediate comments about the suit.
ICP, based in Asheville, N.C., was launched a year ago by Tim
Frank, a former executive of Sany Heavy Industry Co., a big Chinese
maker of construction equipment. The new company initially tried to
sell equipment made by Lonking Holdings Ltd of China through a
website operated by IronPlanet Inc., Pleasanton, Calif., that sells
used heavy equipment.
The suit, seeking unspecified treble damages, alleges the
defendants threatened to boycott IronPlanet if it sold ICP's
offerings, leading IronPlanet to stop working with ICP. That left
ICP without a "feasible means to efficiently bring its products to
market," the suit says. In December, IronPlanet and CAT Auction
Services announced plans to merge.
Chinese makers of construction equipment have struggled to gain
traction in the U.S. market. That is partly because the most
experienced and powerful dealers tend to work with Caterpillar,
Komatsu, Volvo and other more established brands. Buyers of heavy
equipment typically want assurances that a well-staffed and
financed dealer will be around to provide quick parts, repair and
maintenance services.
ICP is represented by the New York law firm Boies, Schiller
& Flexner.
Write to James R. Hagerty at bob.hagerty@wsj.com
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