Komatsu bucks trend with China expansion

The world number two construction equipment manufacturer (after Caterpillar) said it was planning to move its Chinese wheel loader, dump truck and excavator production facility to a new site, which will have a 15% higher capacity than the old site when production begins in 2010.Komatsu said it had recently acquired 630,000 square metres of land in Changzhou, where it already has some existing production facilities. The manufacturer said that while the construction industry in China was partly affected by the global financial turmoil, Komatsu firmly believed that infrastructure development such as highways and railways and more mining activities were indispensable to China, as the nation promotes sustainable economic growth and urbanisation. “In this light, Komatsu projects that the construction and mining equipment market should further expand in the mid to long-range future,” the company said in a statement. The move to the new site will also include the establishment of the Komatsu China (KC) Techno Center, where it plans to house a demonstration facility for Komatsu Group’s products, a training centre for a comprehensive range of educational programs, and a remarketing facility for used equipment and remanufactured components. “By opening this facility adjacent to the plant, KCCM intends to further improve its support capability for end customers and distributors as well as the professional expertise of its employees,” the company said.

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