Komatsu Ltd. (President & CEO: Kunio Noji) has completed the construction of a new assembly plant of Komatsu Manufacturing Rus, LLC (“KMR”). On June 2, KMR held a ceremony in Yaroslavl, Russia and embarked on production. This is Komatsu's first assembly plant in Russia for construction and mining equipment.
Equipped with an integrated production line from welding to assembly, the new plant will produce PC200, 220, 300 and 400 hydraulic excavators. KMR will start with the production of PC400 models and plans to expand the hydraulic excavator model range as it monitors the market conditions. Future plans of KMR also include the production of utility equipment including forklift trucks, large construction equipment, mining equipment and pipelayers.
While the Russian market demand for construction equipment is declining at present against the backdrop of a sluggish economy, we are anticipating growth in demand resulting from the development of rich natural resources and its infrastructure in the mid- to long-range outlook.
When the new plant starts local production of the models which we have previously exported from Japan and China, we believe that we will be better positioned to not only reduce both transportation costs and inventories but also further improve our product support capability for local customers, thereby enhancing customers' confidence with Komatsu-brand equipment.
Outline of Komatsu Manufacturing Rus, LLC (KMR)
・ Name: Komatsu Manufacturing Rus, LLC
・ Representative: Yasuhisa Tsukamoto
・ Location: Yaroslavl, Russia
・ Established: February 2008
・ Main line of business: Production of construction equipment
・ Models of production: PC200, PC220, PC300 and PC400 hydraulic excavators (planned)
・ Fiscal year-end: December
・ No. of employees: 130 (planned as of March 31, 2011)
・ Capitalized: RUB3,641 million (Approx. JPY13 billion)
・ Investment ratios: 93.2% by the Komatsu Group and 6.8% by European Bank for Reconstruction and Development
・ Invested: Approx. JPY13 billion* (for land, buildings, facilities and production start-up expenses)
・ Land area: 500,000 square meters
・ Floor space: 50,200 square meters
* Translated at RUB1 = JPY3.57, the prevailing exchange rate on the day of investment.

New Plant of Komatsu Manufacturing Rus, LLC

Factory opening ceremony at June 2nd, 2010

Komatsu Ltd. President & CEO: Kunio Noji meeting

Kagami-biraki or barrel with sake braking tradition

Factory excursion

Champagne!