February 2008
Snow Angel: Summering near the South Pole…p/3
Contractors in love....p/7
772Ds cut the deck at an Oklahoma casino....p/10
Nothing breathes like a Deere....p/12
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.
e-inspiring
aw
ajestic, and
Stately, m .
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ok
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Scenic
d either
des ain’t ba
And the An
OUR
EQUIPMENT
IS ALMOST
AS FLEXIBLE
AS OUR
FINANCING
Our financing has a lot in common with
the John Deere 310SJ Backhoe Loader. It’s
solid without being rigid, it bends when you
need it to, and it’s here to make your job
easier. We understand the unique needs of
the construction industry, so we offer skip
payments, leasing, PowerPlan™, and other
flexible features designed to maximize your
cash flow, all year long.
Need more information?
See your local John Deere dealer or
visit www.JohnDeereCredit.com.
YOU R M O N E Y W O R K S H A R DE R
The La
Latin
atin beat
Even casual reade
readers of this periodical might be asking, “Why the
sudden love affair with stories from Latin America?” The short
answer is: Explosive growth from loyal customers across 20
countries south of the border including the Caribbean.
Having worked in our Overseas Division, it’s easy to tell you
how gratifying it is to see the growing acceptance of John Deere
construction equipment in all the Americas. I think it says a lot
about the quality and added value of our products and the extraordinary support they get from our dealers down there.
My favorite story was how our dealer in Costa Rica painted
American flags on the booms of our backhoes. When I asked why
they did that, the dealer said it was so his customers would know
they were built at our factory in Dubuque, Iowa. Pretty humbling.
Besides, it’s interesting to learn how people in other cultures
solve a variety of problems with John Deere equipment. I mean,
how else would we know that...
— Rosario, Argentina, is probably the soy flour capital of
the world?
— Puerto Ricans call garbage “desperdicio” and use 744J
Waste Handlers to manage it?
— Mexico has environmental regulations that would make
Al Gore blush?
— Deere graders build logging roads in Tierra del Fuego,
South America?
— The Costa Rican expression “pura vida” means “pure life”
and sugar harvesting means Deere loaders?
And in this issue, we visit two of our best customers,
Movimientis de Suelos way down in Ushuaia, Argentina, and
Milicic Construcciones y Servicios, of the same country. Like
our customers worldwide, they approach life, work, and Deere
machines with “mucho gusto!”
John Deere
and the Angel
at the end of
the world
Welcome to the end of the world. This is it,
pal, the end of the line. Ushuaia (you-shwiya), Tierra del Fuego, Argentina, is the
southernmost civilization on earth. And
quite civilized it is, with mountains, snow,
quaint shops, the Atlantic Ocean, and a
European-style culture that attracts worldtraveler types in droves. The area’s growth
in population, businesses, and road building
is a testament to the fact that, when people
discover the end of civilization, they just
can’t seem to get enough. > > >
Domenic G. Ruccolo
Senior Vice President, Sales and Marketing
Worldwide Construction & Forestry Division
COVER STORY /
Subject to John Deere Credit approval. PowerPlan is a service of FPC Financial, f.s.b.
CR2210536 (07-12)
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Half a world away, Deere makes its mark
Way back when, John Deere had a plant in Rosario, Argentina, that
built top-quality construction equipment for the South American
market. And driving around Rosario, you see vintage equipment
produced by the plant at work all over town. Apparently, the durability of these machines has put a warm spot in local contractors’
hearts for all things Deere — of any vintage.
One of these contractors owns Milicic Construcciones y Servicios, and we were driving down the narrow streets of Rosario and
past all these “classic” backhoes, dozers, and motor graders to see
some new Deere and meet the contractor.
Carlos Milicic is a man who appreciates quality. One glance at
spotless maintenance bays and neat-as-a-pin offices will tell you
that. Being a gracious host, Carlos gave us a tour of his impressive
offices and took us to a worksite where we saw his prized 770D
Motor Grader, just one of many Deere in Milicic’s fleet, flatten the
earth to make way for a new casino.
“I prefer John Deere machines built in the U.S. compared to the
Caterpillars built in Brazil,” Milicic explains. “The quality is so
superior, and the reputation of these machines is so strong, they
enjoy top resale value when it’s time to trade. And they have much
lower operating costs.
“I have many U.S.-built models, and I also have some old
Rosario-built machines dating back to 1979, and a 570A Motor
Grader that was cutting edge when I bought it many years ago.
But as good as those old graders were, the new D-Series from
John Deere are the absolute state of the art. For ease of use,
durability, and machine availability (uptime), no other manufacturer even comes close.”
Milicic Construcciones y Servicios is serviced by Palmero/Rosario.
Juan and Angel Masciotra have struck the perfect
balance between making a living and living well.
So inspired were the conquistadors by Argentina, they
h
named it after argentum — Latin for “silver.” And this
0C LC.
s his 16 sticks in
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: Hilario
y like t e…comfortable
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“Much vator — very s
a
this exc
Hilario Dia
z called “dib
s” on the new
with pilot co
ntrols.
310SJ
Quality fan: Carlos Milicic has
been running Deere since 1979,
and considers his new 770D to
be the “absolute state of the art.”
Both are very good, so it all comes down to service after
glimmering land of silver has been inspiring ever since.
was one word we Yankees understood — familia. Angel used
the sale — and that’s just what we get from our John Deere
It inspired 21-year-old Angel Masciotra, for example, to
the word repeatedly as he spoke of his successful business.
dealer. We cannot afford to shut down waiting for a part.
immigrate to Argentina from Italy. Skip forward three career
And there his family was — Juan, presidente of Movimientis
Remember, we are at the end of the world.”
changes, 51 years, and a fleet of John Deere equipment,
de Suelos, and grandson, Gastón, who is hauling dirt loaded
and you see Angel’s inspiration was absolutely inspired.
by the 624J.
Family affair
“As for business, everything is little by little — you plant
Juan Antonio Masciotra knows this business like his father
The family man
a seed, and if you tend to it, it will grow. I went into construc-
does. “In Tierra del Fuego, it all comes down to service and
Starting out in Argentina, Angel Masciotra never forgot the
tion in 1969 with an old Michigan 55 Loader. As the jobs
parts delivery. We bought our first Deere machine in 1993 —
most important ingredient in making a living: a life. In a
came, so did the pesos and better, more profitable equip-
a 544G Loader. It was good equipment, but back then the
single year, he was able to send home to Italy for his wife,
ment. We could buy much less expensive machines, but I’d
service wasn’t great. So we ran Cat for a while until they
Elvita, and 4-year-old son, Juan. While discussing his new
rather invest in the equipment built by the innovators —
switched production from Illinois to Brazil, and quality suf-
624J Loader on this day with our Spanish interpreter, there
the leaders — in the U.S.A., like Caterpillar and John Deere.
fered. We could get parts, but needed them far too often. > > >
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Contractor builds success with Deere at his side
Out of their basement
and into the black…
“The philosophy is pretty simple,” says Barry Schlouch, owner of Schlouch Incorporated, a site-
4“
4 to a 92
his 62
z prefers
o Lope
Pedro Iv
00!”
times 1,0
From 924 to 624
preparation contractor in southeastern Pennsylvania. “Get up in the morning and give it our best.
Just down the road in the shadows of the Andes Mountains,
Excellence in safety, excellence in quality, excellence in production — if we do a good job that
Pedro Ivo Lopez is working in the company’s quarry. “This
day, it positions us to do a good job the next day.”
Deere 624 has excellent traction and a higher dump height
Schlouch used this mantra to start a husband-and-wife operation in his basement with just
than the 924 — it makes a difference. As a new operator,
$2,000. Their firm generated $495,000 that first year, but 24 years later it has grown to 350
Then, Palmero started selling John Deere, and our equip-
I like features like auto-level…it goes deep into the pile, and
employees and $65-million in revenue. Along the way, his firm has been lauded by the Common-
ment, service, and parts situation have improved consider-
I can transport quickly without spilling. We receive great
wealth of Pennsylvania as the number-one place to work among large firms and recognized by
ably — they sell a great product, and they stand behind
service from the dealer, but I grease the machine myself. You
OSHA with several prestigious safety awards.
the machines.”
don’t have to climb all over a Deere to maintain it.” Okay,
Pedro, but do you prefer the 624 to the 924? “Times 1,000!”
Based on a 65-percent customer-retention rate, many of Schlouch’s customers consider his
company the number-one contractor in Pennsylvania as well. > > >
By the beautiful sea
Next, we head seaside to meet 160C LC operator Hilario
Family hour
Diaz, working by the postcard port of Ushuaia. Hilario is
Now it’s 10:45 p.m., and the sun is finally setting between the
busy dropping rock into the ocean for a foundation to build
Andes in a toast of sorts to this most perfect day. As the dining
another road for the town’s new main drag. “I started over
room fills, in walk Angel and Juan Masciotra to help us rest-
20 years ago on both Deere and Cat equipment, and I prefer
less Yanks relax and enjoy a typical evening out at the end of
the Deere,” says Hilario. “Much more powerful. I particularly
the world. And while it didn’t involve talk about digging, pil-
like the joysticks in this 160 — very smooth and responsive.
ing, leveling, or even backhoe loaders, it was inspiring to see
And Juan has spec’d a new 310SJ with pilot controls, and as
a father and son who had their workdays in sufficient order
senior operator I get elegir primero (first dibs).”
to truly enjoy family life. ¡Salute! ■
Movimientis de Suelos is serviced by Palmero/Tierra del Fuego.
Debi and Barry Schlouch
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Barry Schlouch discovered Deere early on in the develop-
Solutions-driven
Lights, action, and a Deere 850J
When Schlouch Incorporated recently won a bid to prepare
Schlouch Incorporated marshaled its resources and brought
ment of his business and has been counting on the company
history, and that will give us the lowest unit cost. The pieces
a 25-acre building pad for a new Target store in their area,
in lights for the type of around-the-clock job usually reserved
as a partner ever since.
we’ve acquired from John Deere give us the lowest unit cost,
they didn’t know that the owner’s closing and permit delays
for urban interstates or other high-traffic road projects. They
would postpone the job for an entire month, which meant an
also brought a Deere 850J Crawler Dozer equipped with a
and now we have about 25 dozers and excavators,” Schlouch
September start for a job that had to be completed on Novem-
six-way PAT blade and a Trimble GPS system.
says. “The versatility and the hydrostatic technology of the
ever to consider in today’s economy. “It has an amazing
dozers are still up with the best. We get excellent product
effect when you calculate the life cycle of a piece of equipment over seven years like we do,” he says.
ber 30. Scheduling for other pads in the retail complex had
“I really enjoy running the 850J; it’s a strong, powerful,
“We bought our first John Deere 850 about 10 years ago,
to be accommodated, and winter weather was bearing down.
well-balanced machine,” says Jamie Brown, an operator for
support through John Deere and our local dealer — the
The bottom line: too much earth to move, too little time.
Schlouch. “The six-way blade is very versatile. It lets us fine-
people at John Deere get to know us and our needs, and they
grade and do bulk dozer work.”
deliver value. That’s what keeps us up and running.”
“We came up with a proposed solution where we would
work 24/7,” Schlouch explains. “The township didn’t permit
around-the-clock work, so we went to the township — on
our own — to present the benefits of getting this project
It’s when fine-grading that the dozer’s GPS system makes
the most difference, according to Brown. “The Trimble GPS
system on the John Deere 850J is a very useful tool. It lets
Schlouch also factors in fuel costs, more important than
“Many times the sale price of the machine can be higher,
but when you factor in the fuel consumption, it can actu-
Business acumen
of John Deere equipment is also very good. When you add
While a passion for safety and investing in his employees
residual value to fuel consumption, you see the key reasons
why Deere comes out on top.”
us place material more efficiently, anticipate problems,
fuels Schlouch’s work on a daily basis, good business sense
and we’re going to make it on schedule for the customer.”
and see where the infrastructure is going to be so we
sustains and grows the company over the long haul. And
Schlouch’s Jamie Brown runs a John Deere
850J Crawler Dozer equipped with a sixway PAT blade and a Trimble GPS system.
“The cab on the 850J has great visibility —
I can see the corners of the blade, which
is critical,” notes Brown. He uses the
versatile dozer to do both fine-grading
and bulk earthwork.
and that’s why, along with reliability, we go with them.”
ally lower it to a more competitive rate. The resale value
done while the weather was still good. We obtained approval,
can manage the job better.”
do a productivity test by either demonstration or a look at
John Deere is also a big help in that regard.
“The owning and operating costs of John Deere equipment are very competitive,” Schlouch says. “When we
purchase equipment, we look at owning and operating costs
By doing his homework, Barry Schlouch has once again
achieved his goal of positioning his company for doing
“a good job the next day.” ■
Schlouch Incorporated is serviced by Plasterer Equipment
Company, Inc., Lewisberry, Pennsylvania.
upfront, and then we divide it by productivity. We’ll take all
the information from all the manufacturers, and then we’ll
“Our experience with
John Deere has been one
of shared values,” says
Don Swasing, director
of site work services for
Schlouch Incorporated.
“They’re honest and
genuine, with a real sense
of urgency about helping
us be successful.”
In addition to John Deere dozers, Schlouch runs
Deere excavators, including a 350 operated by
23-year veteran Lee Doan. “I like the 350D’s
speed, breakout power, and operator’s station,”
he says. “The operator’s station has all kinds of
nice creature comforts. The temperature control
is very good, and the visibility is great.”
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PRODUCTIVITY | UPTIME | LOW DAILY OPERATING COST
“John Deere knocked the ball out of the park with
these graders,” says Chickasaw’s Darnell Williams
before laying praise on the “awesome” D-Series’
smooth inching pedals.
$
1,934 less
A recent study between a 772D grader
and a leading competitor showed you
would spend 28 percent less for parts
and fluids on the 772D during its first
4,500 hours of use. That’s a savings of
$1,934, which buys a lot of engine oil,
hydraulic fluid, and filters.
better machine, but nothing like the new D-Series. John
Deere knocked the ball out of the park with these graders.
Run
the
numbers
and you’ll run with Deere.
“What makes these machines special is the six-wheel
of the
drive, especially the way the front wheels balance the
LOST ART
Whether dialing in GPS coordinates or relying on pure skill and talent, operators everywhere
are demanding the power and exacting control found in John Deere six-wheel-drive motor
graders. We headed into Oklahoma near the Texas border to see how a fleet of 772Ds
is grading Red River Valley dirt to make way for an expansion of the Chickasaw Nation’s
WinStar Casino. Turns out automatic blade control and the lost art of the blademan
are making quick work of the rugged Sooner ground.
machines, and the way you can adjust the speed of the front
wheels. Another great thing Deere did designing the D-Series
was these machines’ inching pedals — start the machine
in third gear, and it automatically and smoothly gets the
machine up to speed.”
But as much as he enjoys operating the 772, there’s
someplace Ryan would rather be. “Our new 872D is out on
After watching grader-wrangler Ryan Lynch of Hammett
Excavators cutting through the arid red dirt with ease, we
another job today, or I’d be running it. That’s a beautiful and
very powerful grader.”
flagged him down and coaxed him out of the cab to take five
and discuss his favorite brand of grader.
“I was raised on John Deere as an Oklahoma farm boy,”
Cutting to the chase
“You should have been here last week,” we were told. “We
For the casino expansion project, Chickasaw Enterprises’
We’ve been running these two flat-out 9 to 10 hours a day
says the young blademan. “It didn’t take long to get the feel
had five 772Ds out here.” And if we came next week? “None.
Ken Fortner oversees his company’s two 772Ds and a pair of
for the past year with no trouble whatsoever. Just fill ’em
of these 772Ds.” And although he’s a member of Genera-
We’ll be done next week. Ahead of schedule.” The moral
aces in subcontractors Silver Star Construction Company and
up, grease ’em up, and put ’em to work.”
tion Atari, he can cut dirt without the GPS when he needs
here: If you want to catch a John Deere all-wheel-drive motor
to. “These six-wheel-drive machines out-push our old 4WD
grader at work, you’d better step lively — these are some of
the most productive machines in the industry today. ■
Hammett Excavation. “We’ve gone from 35 acres of timber
to 35 acres of parking with the help of two subs, five Deere
Smooth operators
Cat 140H bigtime. The controls are great, especially for fine
772Ds, and a 9420 Scraper Tractor. After the dozer cleared
As a blade cowboy with two-decades’ experience, it’s fun
blade work. We work out here up to 16 hours a day, but
it, the scraper and the 772Ds took 117,000 yards of cut out
to hear Chickasaw’s Darnell Williams describe his alma
with these comfortable cabs, clear visibility, and A/C, it’s a
of there, and did it with ease.
mater, the School of Hard Knocks. “First grader I ran was
pleasure to run them. That satellite radio the boss installed
a mechanical (no hydraulics!) Cat 12E, a ’60s or ’70s
helps, too!”
“I really appreciate the 772Ds. This land is Red River
Valley sand, and our old 140H couldn’t handle it — it would
machine so rough you’d end each day with swollen hands
spin out constantly. But the six-wheel-drive Deere just digs
and wrists. I was happy to get out of that grader and into
in and gets it done just as quick and smooth as you please.
my next machine, a 1987 Deere 570B — it was a much
Chickasaw Enterprises, Hammett Excavation, and Silver Star
Construction Company are serviced by C.L. Boyd Company.
It’s a setup. “This is a terrific setup
on a job like this,” said Chickasaw
Enterprises’ Ken Fortner. “We’re
thinking of going to the bigger 9630
Tractor with dual 21-yard pans.”
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Deere excavators thrive in dusty environment
“If you want a machine to die, you bring it in here,” says
“Our current John Deere D-Series Excavators work really
excavator works the pile. The Deere excavators orbit the
at the ideal temperature. Swing-open coolers reveal easy-
Mark Lyons, an equipment operator at New England Recy-
well in severe environments. We don’t have to stop working.
huge pile like bees circling a hive, catching the brunt of the
clean cores that operators have to wipe off only once or twice
cling (NER) in Taunton, Massachusetts.
We haven’t had any problems, mostly due to their standard
dust as they sort the material.
a day if the dust is especially severe. An optional reversing fan
Harsh words, but then you have to experience the conditions in NER’s facility to truly appreciate the strain they put
cooling package that prescreens the air. We’d have to special
Because the dust is so severe, NER has a misting system on
automatically blows debris out of the cooling cores, reduc-
order a cooling package like that from other manufacturers.”
the ceiling and a worker armed with a hose to try to keep the
ing build-up and increasing uptime, something that is very
particles down. While this reduces some of the dust clouds,
important to Gil Lopes.
on excavators, particularly the cooling systems. A mechanic’s
final assessment might double as a coroner’s report: Victim
Choking conditions
the water helps transform the dust into a dirt coating that
choked to death as a result of dust, moisture, and heat —
Just what’s in the air at NER? The Taunton operation sees
can stick to surfaces — and excavators. And it forms a sticky
downtime needed for service, there hasn’t really been any.
a classic case of a clogged cooling system.
an average of 450 tons of construction and demolition waste
mess on radiators.
With Deere, our needs have been very minimal. Our opera-
“Our excavators work 10- to 12-hour shifts in extremely
dumped daily for sorting by two hydraulic John Deere 200D
Some radiators, that is.
“The cooling system’s been great,” Gil says. “As far as
tors really like the Deere machines, too. They’re faster, more
difficult environments, with lots of dust and moisture,” says
LC Excavators outfitted with Geith grapples. The waste is
Gil Lopes, vice president of G. Lopes Construction, Inc.,
housed in a steel building that sees temperatures reach a
Deere D-Series deals with dirt
which he and his brother Gary co-own with NER.
stifling 110 degrees on the pile.
John Deere D-Series Excavators have radiator doors that
A family tradition
feature side-by-side perforated shields with tiny three-micron
Gil and Gary Lopes learned the construction business from
comfortable, and more powerful than what we used to run.”
“We had a lot of cooling-system problems with our old
With bay doors on only one side of the structure and
excavators, stopping every hour or so to clean the cooling
a grinder constantly operating on the opposite side, dust
holes to keep dirt out. Any dirt that does get in is handled by
their father, Gil, Sr., who started G. Lopes Construction in
systems, and replacing air filters every other day,” Gil says.
collects and swirls each time a truck dumps a load or an
the hydraulically driven, cool-on-demand, variable-speed fan,
1964. Gil, Jr. started as an equipment operator and > > >
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a mechanic in 1976, positions that taught him the value of
Two successful businesses
performance. Now that he’s out of the operator’s seat and in
G. Lopes Construction’s operations are evenly split between
the “big chair,” he has a different view of what constitutes a
site excavation and sand and gravel production. The company
good piece of iron.
also provides crushed stone and recycled aggregates to paving/
“We do focus a lot on product uptime and reliability,”
concrete companies. NER has found a regional niche recycling
Gil explains. “But we also look at resale value. I have to look
construction debris and other materials. Some 20 NER trucks
at all the factors and balance them now. When it’s time to
pick up waste from towns as far away as Nantucket, bound
unload a piece of equipment, we’ve got to get a decent price
for the Taunton operation or an asphalt, brick, and concrete
for it. I also think about my mechanics: Can we get parts fast
operation in Raynham, Massachusetts. The trucks transport
and not pay too much? There are a multitude of things we
the sorted materials for recycle markets as well.
think about.”
New England Recycling started in 1986 with the purchase
Gary Lopes oversees the construction side of the busi-
of stump grinders. The operation evolved into handling C&D
ness and is a fan of the 200D LC’s cab. “The comfort in the
waste in the early 1990s. “Half of the materials are from our
operator’s compartment and the visibility are excellent,”
own roll-off business, and the rest comes from outside cus-
Gary says. “In the recycling environment, we find out very
tomers,” Gil says.
fast what works and what doesn’t work, and John Deere has
given us a far better air-filtration package.”
According to Lopes, NER’s business is fairly steady and not
adversely affected by construction or housing market fluctua-
Operator Mark Lyons notices a difference when work-
tions. “If we’re not seeing newer materials coming in, we’re
ing the pile as well. “The John Deere machines cycle faster.
seeing old materials from refurbishing coming in — there is
They’re quicker with the boom and grapple when you have to
always a waste factor. The material we’re seeing now is com-
multi-function. The pump doesn’t go out on you, and they’re
pletely different than what we saw two years ago. We’re not
quieter and more efficient. The precision is there.”
seeing a lot of new construction waste.”
“The 200D puts up with a lot of abuse. It definitely makes
coming to work a lot easer,” Mark says.
“Zzzzz...”
“Oh! Sorry, must have dozed off. You see,
I’ve been sitting here, patiently, on your dealer’s
shelf since even before you bought your Deere.
Together, the two divisions have achieved $60 million in
Ready and waiting. Anticipating the moment when
sales and employ 275 people, including a couple of very happy
excavator operators in the Taunton facility. ■
there’s a problem and I’m whisked off to the
New England Recycling is serviced by Schmidt
Equipment Inc., Swansea, Massachusetts.
jobsite to save the day amid thunderous applause,
and… Hey, a filter can dream, can’t he?”
“We haven’t had any problems because their
standard cooling package pre-screens the air.
We don’t have to stop working every hour to
clean the cooling system like we used to.”
— Gil Lopes, Vice-President,
G. Lopes Construction
What’s a Deere dealer have that competitive dealers don’t? Parts on the shelf before the
first new machine model is sold. Smart systems keeping critical parts in inventory. And
a borderline obsession with having the right parts on hand.
Need parts now? We’re on it.™
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Vertis QCA
1300 19th Street, Suite 200
East Moline, IL 61244
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DKMAG133CU Page 15
Vertis QCA
1300 19th Street, Suite 200
East Moline, IL 61244
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Magenta
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PRODUCTIVITY
UPTIME
LOW DAILY OPERATING COSTS
“Perfectionist”
Yeah, it’s a real nitpicker. Enhanced hydraulics on a new 160D, 200D, or 225D Excavator feature best-in-class
metering and silky smooth multifunction operation to deliver exact, predictable boom and bucket movement. Shortthrow controls make surgical maneuvers effortless. There’s even more swing torque, plus faster arm roll-in and
boom lowering. See us today to learn how a precise new D-Series Excavator can fit – perfectly – into your operation.
Not all products sold at all locations.
DKMAG133CU Litho in U.S.A. (08-02)
Vertis QCA
1300 19th Street, Suite 200
East Moline, IL 61244
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