Seller of Chinese Equipment Files Antitrust Suit Against Caterpillar, Others

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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