Komatsu and Linde Agree to Transform Komatsu Forklift into Joint-Venture Company

Komatsu Ltd. and Linde AG of Germany, a world leader of forklift truck manufacturers, today reached a basic agreement under which two companies will transform Komatsu Forklift Co., Ltd. into their joint-venture company. After Komatsu Forklift becomes a wholly owned subsidiary of Komatsu by means of stock for stock exchange, the two companies will conclude the joint-venture agreement by the end of November this year, and transform Komatsu Forklift into their joint-venture company. Linde will acquire 35% of shares of Komatsu Forklift by the middle of 2003 and thereafter plans to increase its shareholding ratio up to 48%.

In May 2000, Komatsu, Komatsu Forklift and Linde signed an agreement for cooperative relations endorsed by mutual equity participation. Since then, three companies have built on business cooperation on a global basis in the areas of production and sales of forklift trucks (including warehouse trucks). As competition intensifies worldwide, however, three companies shared the same view that it is indispensable to construct a closer cooperative relationship to strengthen the competitiveness and improve profits of their forklift truck businesses by transcending the previous arrangements. In this light, Komatsu and Linde determined that it is the best possible way to transform Komatsu Forklift into the joint-venture company of the two.

Basic framework of global cooperation in the forklift truck business of Komatsu and Linde is described below.
1. To maintain and expand distinctive products and sales networks based on a multi-brand strategy as a basis, and establish a complementary operations structure by way of making full use of their respective technological and regional strengths.
2. To collaborate further as a unified team of partners to lead the forklift truck business, based on mutually agreed common strategies.
3. To work to generate synergy effects through reciprocal supply of products and components, joint development which incorporates technological advantages of the two, licensed production and other arrangements.

As the joint-venture company of the two, Komatsu Forklift will be able to offer competitive Komatsu-brand products which feature Linde Group's electric-powered forklift technologies, while expanding its international marketing network. Under this operational framework, Komatsu Forklift will be better positioned to deliver a comprehensive range of products and services more efficiently to customers and distributors.

Linde will work to expand its business by deploying Komatsu Forklift's marketing network for sales of Linde-brand products in Japan, supply of electric-powered forklift trucks in Asia, which are manufactured by STILL GmbH, a member of the Linde Group, and other benefits. Linde will also be able to conduct more efficient, non-overlapping product development by utilizing Komatsu's leading-edge technologies and components such as transmissions.

Komatsu and Linde will establish this joint-venture company subject to the approval of the Anti-Trust Authorities.

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Last updated:2002/05/10 16:08