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| Komatsu to reorganize businesses At the Board of Directors' meeting held on April 14, 2009, Komatsu Ltd., the world's second largest manufacturer of construction and mining equipment, made a resolution to reorganize Japanese production of the Construction, Mining and Utility Equipment and the Industrial Machinery businesses. Through the fiscal year ended March 31, 2008, the Komatsu Group had expanded both sales and profits for six consecutive years. This was done by strengthening production capacity as well as sales and product support capabilities, particularly in "Greater Asia, " and engaging in timely launchings of new products and other strategic initiatives. However, since the last half period of 2008, the market environment has become very challenging for both businesses against the background of economic recessions around the world. The Komatsu Group has focused its efforts in a diverse range of operations. In addition to production adjustment designed for speedy rationalization of inventories, such efforts include consolidation and elimination of plants and production lines while pinning down its model range of production in North America and Europe, reorganization of the Japanese sales and service structure, consolidation of plants and head office operations of Komatsu Utility Co., Ltd., and group-wide efforts in fixed cost reduction. As it is also important to further reinforce its corporate strength, the Komatsu Group has decided to shut down Mooka and Komatsu plants and transfer their production to Ibaraki and Kanazawa plants and other facilities. In addition, Komatsu NTC Ltd., a wholly owned subsidiary, is going to concentrate the production of wire saws in the Toyama area (along the Sea of Japan) by shifting it from the current location of Yokosuka City, Kanagawa (along the Pacific Ocean). write your comments about the article :: © 2009 Construction News :: home page |