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    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.

    Source: Komatsu

    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.

    Regions

    Names

    Conditions

    Notes

    Japan

    Americas

     

    Komatsu do Brasil Ltda.

     

    Planning to halt production.

    (April 6 – April 21)

    Europe & CIS

    Komatsu Italia Manufacturing S.p.A.

    Planning to halt production.

    (March 26 – April 3)

    Komatsu UK Ltd. Planning to halt production.

    (March 30 – April 17)

    Komatsu Germany GmbH

    Construction Division

    (Hannover, Germany)

    Planning to halt production.

    (April 4 – April 13)

    Komatsu Forest AB

     

    Planning to halt production.

    (April 13 – April 17)

    China All plants Resumed production.

    Resumed steadily since February 10, and resumed production at all plants on February 17.

    Asia & Oceania Komatsu India Pvt. Ltd.

     

    Halting production.

    (March 24 – March 31)

    Middle East & Africa

    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

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