Komatsu to Build Two Plants near Ports in Japan for Large Equipment

Komatsu Ltd. announced today that the Company is going to build a new plant to expand its production capacity of large equipment in response to brisk demand. The plant will be located near Kanazawa Port (site area:130,000 square meters) in Ishikawa Prefecture on the Japan Sea coast. Komatsu is also going to build a new plant adjacent to Hitachinaka Port (site area:190,000 square meters), about 100 kilometers northeast of Tokyo, in Ibaraki Prefecture. The total amount of investments is approximately ¥30 billion, and both plants are scheduled to start up production in January 2007.
Komatsu anticipates that a high level of demand for off-highway dump trucks and other mining equipment will continue in light of brisk demand in the construction and mining equipment market, particularly from energy and resources development sectors.
Similarly, in the large press market, Komatsu projects strong orders will remain fueled by aggressive investments by the automobile manufacturing industry.
In addition to enhancing its production capacities in response to expanding demand, Komatsu also believes that these new plants should substantially cut down its transportation costs and CO2 emission as they will be located adjacent to the ports. To accomplish these objectives, Komatsu also looks forward to prompt actions of the concerned prefectural governments for further improvement of port facilities.

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