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Industry Beat Nortrax Opens New Miami Facility Nortrax recently celebrated the grand opening of their new state-ofthe-art 26,000-square-foot facility in Miami. The $7-million project includes eight service bays and a track press area, tripling the size of the service department. A two-story rack system, doubles the dealership's parts storage capacity. Shown from left to right: Eny Sanchez, general manager, Nortrax Miami; Robert G. Miller, facilities engineer, John Deere; Kevin Karlix, director of Sales U.S. and Canada, John Deere; Tom Fennelly, senior vice president, Russell Construction; Ryan Andresen, project manager, Russell Construction; Bill Pyles, vice president, Service North America, Nortrax; Mike Festing-Smith, regional vice president, Nortrax. BOMAG (FAYAT GROUP) to Acquire Certain Roadbuilding Assets and Operations from Terex BOMAG (FAYAT GROUP) announced it has entered into a purchase agreement with Terex to acquire certain product lines in North America, and the Roadbuilding operations of Latin America (ex-Cifali). "The addition of these product lines enhances the position of FAYAT GROUP as the only full liner in road building equipment, for long-term success and significant growth potential in the industry. Moreover, it accelerates our footprint in emerging countries," said Jean-Claude Fayat, FAYAT GROUP executive managing director. "We are pleased to announce the agreement and are proud to welcome the Cedarapids and CMI products (asphalt pavers, reclaimer/stabilizer and material transfer vehicles/devices) and reputable brand images into the BOMAG America's offerings," stated Rob Mueckler, vice-president of Sales & Marketing. "We intend to fully leverage our collective strengths to more efficiently serve road building customers."* The acquisition will position BOMAG to offer a broad range of road building products and solutions to customers, and reinforce the global leadership of MARINI-ERMONT (FAYAT GROUP) in the mixing plant segment in Latin America. The aging infrastructure of the North American transit system and the development of infrastructure in South America are expected to continue to drive an increasing demand for road building and compaction equipment. * CMI and Cedarapids are registered trademarks of Terex Corporation or its affiliates licensed for use to FAYAT GROUP under the terms of the purchase agreement. IRS Seeks Comments on Dual Use Equipment Canadian Distributors Press Ministers for Infrastructure Investment The IRS is seeking comments on dual-use property as it considers issuing new guidance to reduce disputes between equipment dealers and the agency. Specifically, the IRS wants to know "whether construction and agricultural equipment held simultaneously for sale or lease to customers ("dual use property") by a dealer in such equipment is properly treated as inventoriable property or as a depreciable property." The notice also asks for comments about when dual-use property may be eligible for like-kind exchange (LKE) treatment. All comments are due June 16. AED will be analyzing the IRS notice and reaching out to industry leaders for help developing our position. Contact AED Vice President of Government Affairs Christian Klein at caklein@aednet.org if you are interested in participating. AED is ramping up its pressure in Ottawa as Building Canada, the $8.8 billion fund for construction projects, is set to expire in 2014. Working with its members in Canada and with the Canadian Chamber of Commerce (CCC), AED hopes to raise visibility on the critical need for sustaining the country's infrastructure networks. The association recently committed $5,000 to a new CCC infrastructure initiative to press the Canadian government for long-term, stable infrastructure investment. In a January letter, 34 Canadian AED members asked Transport, Infrastructure & Communities Minister Denis Lebel and Finance Minister James Flaherty to renew and expand the country's commitment to infrastructure. (continued on page 16) 14 | www.cedmag.com | Construction Equipment Distribution | March 2013 14_industry beat_KP.indd 14 2/27/13 2:15 PM