Komatsu Castex to Establish Joint-Ownership Manufacturing and Sales Company of Castings in China

Komatsu Castex Ltd., a wholly owned subsidiary of Komatsu Ltd., manufactures and sells cast parts for construction and mining equipment. Komatsu Castex has recently signed a contract to establish a joint-ownership company in China with Shantui Construction Machinery Co., Ltd., a Chinese manufacturing and sales company of construction equipment, to manufacture and sell castings for construction equipment for Komatsu Ltd. in Japan and other Komatsu Group companies in China and overseas.
The new company, Shantui Steel Casting Co., Ltd., is scheduled to launch full-scale operation in January 2006, after completing application and registration procedures with concerned authorities.

Demand for castings is increasing sharply against the backdrop of dynamic growth in demand for construction and mining equipment. The partner Shantui Construction Machinery engages in in-house production of cast parts for its bulldozers, and has worked to spin off its castings division in order to improve the product quality and expand production volume. Komatsu Castex was reviewing the possibility of establishing an offshore procurement base to meet expanding demand. Under these circumstances, Komatsu Castex has made equity participation in Shantui Construction Machinery�fs castings division and established the joint-ownership company.
As an offshore procurement base of Komatsu Castex, Shantui Steel Casting will supply not only cast materials for assembly sheet metal parts to Komatsu�fs plants in Japan but also cast parts to production bases in China by demonstrating excellence in Quality, Cost and Delivery.

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