KOMATSU : Komatsu to Strengthen Construction and Mining Equipment Operation in Changzhou, China

To further expand the construction and mining equipment business in China, Komatsu Ltd. (President & CEO: Kunio Noji) has recently acquired land (approx. 630,000 square meters) in Changzhou where Komatsu (Changzhou) Construction Machinery Corp. (KCCM) (President: Keiji Murakami), a major production base of the Komatsu Group is located. Komatsu is going to relocate the entire operation of KCCM to the new site and build a new plant and KC* Techno Center there.

* Komatsu (China) Ltd.

1. Relocation of KCCM and Building New Plant

Established in 1995, KCCM began its operation with the production of wheel loaders. In tandem with the growth of the Chinese market, KCCM has steadily expanded its production volume by including large hydraulic excavators and dump trucks for mining use.
Partly affected by the global financial turmoil, the Chinese market is posing a challenging environment for Komatsu. Nevertheless, Komatsu firmly believes that infrastructure development (e.g., highways and railways) and more mining activities are indispensable to China, as the nation promotes sustainable economic growth and urbanization. In this light, Komatsu projects that the construction and mining equipment market should further expand in the mid- to long-range future.
Against this background, KCCM has secured the land, about twice as large as the current space, to reinforce its operation.

(1) New location	Luoxizhen, Xinbeiqu, Changzhou, Jiangsu, China
(2) Production start-up	January 2010 (planned)
(3) Site area	Approx. 300,000 square meters (current site: approx 140,000 square meters)
(4) Outline of KCCM	a) Established : May 1995
	b) President : Keiji Murakami
	c) Production : Wheel loaders (since 1996) , Hydraulic excavators (since 1999) , Dump trucks (since 2005)

2. Establishment of KC Techno Center

As the Chinese market should further expand, it is becoming ever more important for Komatsu to ensure a complete understanding of its end-customers and distributors concerning the machine performance as well as efficient application and operating methods for Komatsu's full-line construction equipment and other products. As part of KCCM's initiatives of relocating its production facilities, KC is going to open the KC Techno Center, where KC plans to house a demonstration center for Komatsu Group's products, a training center for a comprehensive range of educational programs, and a remarketing center for used equipment and Reman components. By opening this facility adjacent to the plant, KCCM intends to further improve its support capability for end-customers and distributors as well as the professional expertise of its employees.

(1) Name	KC Techno Center
(2) Completion of construction	June 2010 (planned)
(3) Site area	Approx. 230,000 square meters
(4) Objectives	a) Demonstration center To display and demonstrate efficient application and operating methods of Komatsu Group's products, centering on construction and mining equipment.
	b) Training center To hold a wide range of educational programs, from management and IT to sales, service engineering and construction methodology.
	c) Remarketing center To reinforce and expand the businesses of used equipment and Reman components.

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Information in the news releases is current on the date of the announcement and is subject to change without notice.

Komatsu to Strengthen Construction and Mining Equipment Operation in Changzhou, China

Relocating KCCM, building a new plant, and establishing the KC Techno Center

1. Relocation of KCCM and Building New Plant

2. Establishment of KC Techno Center