Plant hirer stops Cat orders over Leverton move

Plant hirer LPH Equipment has cancelled an order for 70 Caterpillar backhoe loaders from Leverton in response to the firm's controversial move to set up its own plant hire business to help increase its market share of compact equipment.

And other hirers are also suspending orders and demanding emergency talks with Caterpillar following Leverton's move.

Colin Oldfield, LPH's managing director, said: 'We feel it inappropriate that we should take equipment from a main line dealer that also operates in the hire field.' The company, which has spent around œ12 million on new machines in recent months, has already returned a number of Cat 428B backhoes to the dealer.

Other hirers are also looking for clarification of Leverton's position. Peter Stringer, managing director at Agent Plant, said: 'Ourselves, A-Plant and Hewden Hire have requested a meeting with Caterpillar at the highest level, in order to ascertain its position on plant hire in the UK. I had arranged a meeting with Cat to discuss the purchase of telehandlers and rollers. Until Caterpillar's strategy on plant hire is established this meeting is suspended.'

Cat dealer Leverton, which played a key role in setting up the independently run BCP Plant Hire, continues to state that the new hire outfit is not acting as a competitor to its customers.