Komatsu To Build Undercarriage Components In China

Posted on August 30, 2007

In an effort to support its growth in one of its fastest-growing markets, Komatsu Ltd. announced plans to set up a parts unit for undercarriage components for excavators and other machinery in China. The company said the new subsidiary was a departure from its previous practice of making most of its undercarriage components in Japan and Indonesia. "Against the backdrop of surging demand for construction equipment worldwide, our supply capacity has reached its top level," the company said in a statement.

Demand for hydraulic excavators in China climbed to 30,000 units last year and is expected to keep rising sharply as the Chinese government moves ahead with infrastructure development and other construction projects. China sales account for 7 to 10% of Komatsu's overall revenue but recent growth has been spectacular, with sales jumping 63% in the April-June first quarter.