Coronavirus: Komatsu to pause production everywhere but China

Coronavirus’ effects have been expanding around the world, as represented by the World Health Organization’s declaration of it as a pandemic and the ensuing state of emergency proclaimed by a number of governments.

In response to the policies of different governments, the Komatsu Group is working to prevent coronavirus from spreading as it places top priority on the health and safety of customers, local communities, and employees. In compliance with the policies, some manufacturing plants of the Komatsu Group are going to halt production temporarily, as described below. At business bases in operation, Komatsu is implementing a wide range of countermeasures, including fever checks, the use of face masks, flex commuting, the prohibition of business trips, and teleworking.

They will continue to disclose information concerning this matter.

1.     Effects on production and sales

They have worked on global cross-sourcing and procurement of finished vehicles and parts in order to absorb the impact of changes in market demand and foreign exchange rates. Although they are planning to halt production at some manufacturing plants, there are no critical effects on Komatsu Group’s production for FY2019, due to alternative procurement and inventory reallocation.

For Komatsu sales bases to ensure the continuous supply of products and parts to customers and distributors, it is reassessing its supply routes and engaging in a shift work schedule, in particular.

[Conditions of main production bases by region] (As of March 24, 2020)*1

*1 Base as affected by halting operations are described below.

2.     Effects on business results

Consolidated business results for FY2019 (ending March 31, 2020), projected on October 30, 2019^*2, include no impact of the coronavirus pandemic. They will disclose any considerable effects as soon as they anticipate them.

^*2 They did not change this projection when they announced them business results for nine months of FY2019.

• The information described is at the time of presentation and may be subject to advance notice.

Source: Komatsu