Komatsu and Volvo Construction Equipment in Talks on Industrial Cooperation for Components

Komatsu Ltd. and Volvo Construction Equipment have initiated discussions regarding future cooperation in the production and development of construction equipment components. Tangible outcomes from the discussions are expected by mid-year 2002.

The intention is to determine whether both companies can find ways to strengthen their cost competitiveness and to increase customer satisfaction.

"We believe this cooperation could lead us to find high quality and cost effective solutions," says Mr. Masahiro Sakane, President of Komatsu, and Mr. Anthony C. Helsham, President & CEO of Volvo Construction Equipment, in a common statement to the announcement.

In the discussions, Komatsu and Volvo Construction Equipment will not include sales, service, distribution and equity participation.

Both companies will continue to engage in business as independent competitors using their own dealer networks, brands and identities.

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The Komatsu Group, with Komatsu Ltd. at its center , comprises 128 consolidated subsidiaries with approximately 31,000 employees. Komatsu is the world's second largest manufacturer of construction and mining equipment with 28 production bases in 14 countries worldwide.

Last updated:2001/11/09 15:10

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