KOMATSU
Achieving Customer Production Goals via Dedicated Leadership in Maintenance Contract Services

By José Carlos Pierri Sobrinho, Komatsu Forest Ltda.

The PC228 hydraulic excavator with the Valmet 370E harvester head delivers outstanding operating performance with an excellent tree debarking function and productivity.

Valmet 370E harvester head

Komatsu representatives with the directors of Komatsu Forest Ltda. prior to the visit to Aracruz plant
Aracruz Celulose S.A. operates the world's largest eucalyptus pulp mill in Espírito Santo State in southeastern Brazil. Pulp, a vegetable fiber present in all forest species, is used to manufacture various paper products for printing and writing, personal hygiene (tissue) as well as photographic paper, among others. In modern industrial pulp production, there are many stages from planting the trees to packaging and shipping the product to various markets around the world.

Aracruz has 279,000 ha (689,424 ac) of planted eucalyptus trees, and the company also owns about 154,000 ha (380,542 ac) of native forest reserves in the states of Espírito Santo, Bahia, Minas Gerais and Rio Grande do Sul. This results in every 2 ha (5 ac) of eucalyptus plantations being offset by 1 ha (2.5 ac) of protected reserves. The Aracruz Forestry Partners Program acquired a landmark 88,000 ha (217,453 ac) of forest plantations through contracts signed with local farmers in 156 municipalities in eight Brazilian states.

All of Aracruz's forests, as well as the chains of custody at the Barra do Riacho and Guaíba units, are certified by the Brazilian Forest Certification Program (CERFLOR), which confirms the sustainable origin of the wood used by Aracruz.

Forestry activities are the core of Aracruz's production process, as the main raw material used by the company comes from planted eucalyptus. In this regard, Komatsu Forest Ltda. is a strong partner in Aracruz's pursuit to reach challenging production goals in terms of volume and productivity.

Mutually Beneficial Partnership Based on Optimal Contract Support
The year 2006 was positive overall for the sector, bringing high demand worldwide. According to the latest statistics from producers' associations, the worldwide demand for eucalyptus pulp rose 13%, substantially higher than the market average of about 5%. This boosted world demand for the product to over 11 million tonnes (12 million U.S. tons) per year, of which Aracruz supplied 27%, maintaining its position as the market leader.

In this regard, Aracruz has found a great partner in Komatsu Forest due to Aracruz's need to harvest trees in its planted forests. Komatsu Forest has developed a full maintenance services contract responsible for all maintenance management, including the logistics of spare parts provided in the field.

This contract covers all Komatsu and Valmet brand machines owned by Aracruz for almost 10 years, and includes a fleet of 208 units of equipment comprised of harvesters based on hydraulic excavators (PC200 and PC228), harvester heads used in these harvesters (Valmet 370E with debarking function) and forwarders (Valmet 890.3 and Valmet 860.3).

The functions performed in the contract encompass mechanics training and preventive and corrective maintenance, among others.

The purpose of all the activities performed under the contract is to deliver the highest possible mechanical availability, which means increased production for Aracruz and other contract customers in Brazil and a higher commitment of all Komatsu Forest personnel.

Strong Relationship Backed by Total Commitment to Customer
To further develop the strong partnership of Aracruz and Komatsu Forest Brazil, Komatsu Forest recently established a Joint Follow-Up Log (JoiFUL) meeting with Aracruz representatives in order to discuss the relationship directed toward constantly improving products and services.

With the same purpose, Komatsu representatives, including Mr. Yoshinori Komamura, director and senior executive officer and president of the Construction & Mining Equipment Marketing Division of Komatsu Ltd.; Ms. Keiko Fujiwara, general manager of the Americas operation; Mr. Yoshinori Terado, president of Komatsu Latin-America Corp.; Mr. Valdemar Suguri, managing director of Komatsu Brasil International Ltda.; Mr. Toshio Miyake, president of Komatsu Forest; Mr. Gilson Scofield dos Santos, managing director of Komatsu Forest Brazil; and Mr. Lonard Scofield dos Santos, marketing & sales director of Komatsu Forest Brazil, visited the headquarters of Aracruz in Barra do Riacho and were warmly received by its representatives with an impressive presentation on the excellence and potential of Aracruz's mill and operations.

The main idea is always to generate a win-win relationship with the customer. Information-sharing and transparency enable a customer to easily understand exactly how Komatsu Forest is handling its fleet and the structural means of deployment in order to best meet the customer's needs.

Furthermore, Komatsu Forest is absolutely committed to Aracruz's targets in terms of satisfying their customers' demands worldwide. Some examples of features that give Komatsu Forest the leading edge in technology and make the difference to Aracruz and other important customers all over Brazil are low emission engines that meet U.S. EPA Tier 3 and EU Stage IIIA emissions regulations without sacrificing power or machine productivity; implementation of data transference directly from machines to Aracruz's central database, reducing costs and achieving more accurate control of operations; and the efficient debarking process of the Valmet 370E harvester head and the machine tracking system, KOMTRAX, in new Komatsu machines.

A major deal to supply Aracruz with a fleet of machines has been concluded, showcasing Komatsu Forest Brazil's complete commitment to its customer. In the near future, Komatsu Forest foresees expanding its participation in Aracruz's operations due to increased work and partnership opportunities.

A customer like Aracruz represents the constant opportunity to develop new and advanced solutions and improve all Komatsu's products and services.