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Komatsu Opens Second Factory in India

CHENNAI/INDIA, June 1, 2015 – Komatsu held the opening ceremony of a new factory for hydraulic excavators in Chennai, India. Komatsu calls the country a market with “promising growth” and plans to setup Chennai as a new manufacturing hub – not only for India.

Production of excavators in Chennai, Tamil Nadu

Komatsu invested JPY 3.4 billion (25 million EUR) in its new
factory which is going to produce 2,500 to 3,000 units per year. The
planned production is going to start with excavators with
a weight between 7 and 45 tons. | photo: Komatsu

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 the financial year 2013, 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.

Second factory in India

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. Since April 2015, Komatsu has begun to steadily transfer the production of five models of hydraulic excavators to Chennai (Tamil Nadu) in South India.

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 aims to build up a more flexible global production and supply operations.