Caterpillar says supply chain not hurt by quake

PEORIA — Peoria-based Caterpillar says while the supply chain from Japan hasn't been affected by the earthquake and tsunami, there may be problems down the road.

According to Caterpillar, its facilities in Tokyo, Akashi and Sagami were not damaged by the earthquake and are outside the area under a mandatory evacuation. However, the maker of construction and mining equipment said Friday production has varied from day to day because of the disaster.

Caterpillar says it is actively developing alternative sources for components produced by Japanese-based suppliers, should some suppliers not be able to provide components to Caterpillar operations inside and outside Japan.

The Caterpillar Foundation has announced a $1 million grant to the American Red Cross for disaster relief efforts in Japan, adding it will match up to $500,000 in employee contributions.