Jan. 31, 2022
Komatsu Ltd. (hereafter "Komatsu") (President & CEO: Hiroyuki Ogawa) has agreed to dissolve the equity participation of SINOMACH Changlin Co., Ltd. (hereafter "Changlin"), based in Jiangsu, China, and Sumitomo Corporation (hereafter "Sumitomo") in Komatsu (Changzhou) Construction Machinery Corp. [hereafter "Komatsu (Changzhou)"], based in Jiangsu, China, a joint-venture company with Changlin and Sumitomo.
In 1995, Komatsu established Komatsu (Changzhou), a joint-venture manufacturer of wheel loaders in Changzhou, Jiangsu Province, with local manufacturers of construction equipment, such as Changlin. Later, Komatsu (Changzhou) added hydraulic excavators and other equipment to production and has supplied its products mainly in China.
After discussing with Changlin the future directions of the business, in light of changes in the business environment for the last few years, Komatsu and Changlin have agreed to promote their respective businesses independently and dissolve Changlin’s equity participation in Komatsu (Changzhou). In line with the agreement with Changlin to dissolve its equity participation, Komatsu and Sumitomo have also agreed to dissolve Sumitomo’s equity participation in Komatsu (Changzhou). In addition, Komatsu and Sumitomo have already agreed to dissolve Sumitomo’s equity participation in Komatsu Shantui Construction Machinery Co., Ltd.
Together with the partners, Komatsu will proceed with the process as required in FY2021, ending March 31, 2022, and believes that there will be no adverse effects on customers with respect to product delivery. Komatsu also anticipates that the impact of this termination on its consolidated business results will be minimal.
<Outline of the Komatsu (Changzhou) Construction Machinery>
Name : Komatsu (Changzhou) Construction Machinery Corp.
Located : Changzhou, Jiangsu, China
Representative : Quanwang Zhang, Chairman of the Board
Line of business: Manufacture of construction equipment
Capital Stock : US $ 41 million
Established : May 1995
Equity : 85% by Komatsu (China) Ltd., 8% by Changlin, and 7% by Sumitomo
No : 0088(3103)
Corporate Communications Department
Sustainability Promotion Division
Komatsu Ltd.
tel: +81-(0)3-5561-2616
mail: JP00MB_cc_department@global.komatsu
*The information may be subject to change without notice.
