Komatsu Announces Restructuring of the Industrial Machinery Business: Merger of Two Wholly Owned Subsidiaries and Simplified Absorption-Type Merger of Wholly Owned Subsidiary
Komatsu Ltd. (hereinafter "Komatsu") (President and CEO: Kunio Noji) announces today that the Board of Directors, at the Board meeting held on November 16, 2010, approved the merger of Komatsu NTC Ltd. (hereinafter "Komatsu NTC") and Komatsu Machinery Corporation (hereinafter "Komatsu Machinery") effective April 1, 2011 in the manner described below. The Board of Directors also made a resolution concerning the merger of Komatsu Engineering Corp. (hereinafter "Komatsu Engineering"), a wholly owned subsidiary of Komatsu, with Komatsu in the form of simplified absorption-type merger to be effective April 1, 2011. komatsu Engineering also belongs to the Industrial Machinery and Others segment.
The automobile manufacturing industry, a major client industry of Komatsufs Industrial Machinery and Others segment, curtailed capital investment considerably as affected by the global financial crisis in the autumn two years ago. Recently, however, as automobile production volume has been growing, especially in China, India and Brazil, automakers' capital investment has upturned for recovery. In addition, the solar cell manufacturing industry has been stepping up capital investment in China and other Asian countries. Accordingly, we at the Komatsu Group expect that demand for industrial machinery should continue to grow in our Strategic Markets, such as China, Asia and Latin America.
Under such a business environment, following the restructuring of the press business in April 2010, Komatsu is going to restructure the industrial machinery business in order to ensure its sustainable growth as a core business of the Komatsu Group. Specifically, Komatsu NTC and Komatsu Machinery, both engaging in the machine tools business, are going to merge, and Komatsu is going to absorb Komatsu Engineering. With respect to the merger of Komatsu and Komatsu Engineering, Komatsu will be better positioned to incorporate this subsidiary's technologies and expertise and apply them to not only industrial machinery but also construction equipment, thereby strengthening Komatsu Group's manufacturing edges. Through this restructuring, Komatsu is going to facilitate a selective focus of its businesses for higher-efficiency management.
As these mergers are going to take place between two wholly owned subsidiaries of Komatsu and Komatsu and a wholly owned subsidiary in the form of simplified absorption, certain matters and descriptions are omitted from the disclosure below.
*Please find attached file for more details.
Information in the news releases is current on the date of the announcement and is subject to change without notice.
2010/11/16
No. 037(2239)
KOMATSU Corporate Communications
TEL: 03(5561)2616
Other sites
Komatsu Announces Restructuring of the Industrial Machinery Business
