Oct. 29, 2021
Komatsu Ltd. (hereafter “Komatsu”) (President & CEO: Hiroyuki Ogawa) has agreed to dissolve the equity participation of Shantui Construction Machinery Co., Ltd. (hereafter “Shantui”), in Komatsu Shantui Construction Machinery Co., Ltd. (hereafter “Komatsu Shantui”), based in Shandong, China, a joint-venture company with Shantui and another partner.
In 1995, Komatsu established Komatsu Shantui, a joint-venture manufacturer of hydraulic excavators in Jining, Shandong Province, with Shantui, a local manufacturer of construction equipment and other partners. Ever since, Komatsu Shantui has supplied its products throughout China.
After discussing with Shantui concerning future directions of the business, in light of changes in the business environment for the last few years, Komatsu and Shantui have agreed to promote the respective businesses independently and dissolve Shantui’s equity participation in Komatsu Shantui. .
Together with Shantui, Komatsu will proceed with the process as required in FY2021, ending March 31, 2021, 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 Shantui Construction Machinery>
Name : Komatsu Shantui Construction Machinery Co., Ltd.
Located : Jining City, Shandong, China
Representative : Chairman of the Board Quanwang Zhang
Line of business: Manufacture of construction equipment
Capital Stock : US $ 21 million
Established : July 1995
Equity Stakes : 60% by Komatsu group and 30% by Shantui and 10% by Sumitomo Corporation
No : 0061(3076)
Corporate Communications Department
Sustainability Promotion Division
*The information may be subject to change without notice.