Komatsu to Establish Joint Ownership Company to Produce and Sell Cast Parts for Construction and Mining Equipment in China

Hensley Industries, Inc., a wholly owned subsidiary of Komatsu Ltd., which manufactures and sells buckets, teeth for buckets, edges and other adapters for construction and mining equipment, has recently signed a contract with Mr. Ricky Zhang, owner of Yinzhou Precision Foundry Hardware Factory- a Chinese manufacturer of cast parts. Under the contract, the two parties will establish a joint ownership company in China to manufacture and sell Komatsu and Hensley Industries products. After filing the required applications with the related authorities and fulfilling other legal requirements, the new company is scheduled to launch full-scale operations in July of this year.
The global market for construction and mining equipment has seen an increase in the ratio of hydraulic excavators, wheel loaders, and other types of equipment that use buckets. Komatsu expects to experience growth in the after-sales market of buckets and other ground engaging tools, while Hensley Industries, based in Dallas, Texas and ranked second in the world, is a specialized manufacturer of such products. Since becoming a member company of the Komatsu Group in 2000, Hensley Industries has worked to broaden its product line and strengthen its supply network.
The new company is well positioned to produce and sell world class, high-quality, cost competitive products by combining Yinzhou Precision Foundry Hardware Factory�fs top-class technology in the lost-wax casting process, with Hensley Industries' expertise in quality control and production technologies. Hensley Industries has strategically positioned the new company as a worldwide supply base for its small and medium-size construction equipment products, and is working to further expand business around the world, especially in Japan and the rest of Asia. The Komatsu Group plans to market the new company products through Komatsu's and Hensley Industries' sales networks to generate a consolidated sales goal of ¥1 billion in three years.

(end)