Komatsu Builds New Factory for Hydraulic Excavators at Komatsu India
13 May, 2015
Komatsu used to produce hydraulic excavators at L&T-Komatsu Limited (LTK), a joint-venture company with Larsen & Tourbro Limited (L&T), a leading general contractor of India. In April 2013, Komatsu sold its equity in LTK to L&T, proactively dissolving the joint-venture agreement. Since FY2013, Komatsu has been responsible for the development and production of Komatsu products made in India, while L&T has handled sales and service of those products in terms of the separation of operations. Practically, however, both parties agreed that Komatsu would consign the production of Komatsu hydraulic excavators to L&T for the time being and steadily consolidate their production at Komatsu.
In addition to its factory for dump trucks, Komatsu has recently built a new factory for hydraulic excavators at KIPL, an overseas subsidiary of Komatsu, and, since April 2015, has begun to steadily transfer the production of five models of hydraulic excavators from LTCEL (formerly LTK), a subsidiary of L&T, with whom Komatsu consigned the production.
Komatsu believes that India is one of the leading markets with promising growth in the mid to long terms for construction equipment and regards its business in India in a long-range perspective. Komatsu positions this new factory for hydraulic excavators in Chennai as a core manufacturing site to deliver high-quality products to customers in, not only India, but also the Middle East and Africa in the future. With this new factory, Komatsu is going to build up more flexible global production and supply operations and further sharpen its global competitiveness.
[Outline of Komatsu India Pvt. Ltd.]
Name: Komatsu India Pvt. Ltd.
Headquartered: Chennai, India
Representative: Kiyoshi Mizuhara
Line of business: Manufacture, sale and service of construction and mining equipment
No. of employees: About 400 persons
[Outline of the new factory for hydraulic excavators at KIPL]
Invested: JPY3.4 billion
Models of production: 7 to 45-ton classes of hydraulic excavators
Production capacity: 2,500 units/year (possible to increase to 3,000 units/year)