Komatsu Ltd. (President & CEO: Kunio Noji) announced today that Komatsu (China) Ltd. has established Komatsu China Mining Limited (hereinafter "KCML"), a wholly owned subsidiary to engage in sales and product support of mining equipment and its parts exclusively for large-scale mining customers. Headquartered in Beijing, KCML commenced operations on October 1, 2010.
KCML operates a total of seven on-site offices in Shanxi Province, Inner Mongolia Autonomous Region and Jiangxi Province. Together with the rebuild center opened in Shuozhou, Shanxi Province in 2009, the Komatsu Group is strengthening its direct product support capability for large-scale mining customers in response to their urgent needs for non-stop, round-the-clock mining throughout the year.

Today while less efficient, small and medium-scale mines are being eliminated and merged in order to achieve efficient expansion of production of coal, iron ore, copper and other minerals, large-scale mining companies are placing more efforts to develop new mines. As a result, demand for large mining equipment is growing steadily.

Against this backdrop, Komatsu's sales of mining equipment have been accelerating since 2006. In light of the increased number of equipment in use and mines, the Komatsu Group is expecting steady growth in demand for machine maintenance and overhauls, which calls for the increasing importance of improving its product support capabilities.

Having established KCML, the Komatsu Group is better positioned to offer not only equipment of excellent QCD&S (Quality, Cost, Delivery & Safety) but also individual customer-oriented service by conducting prompt supply of parts and capitalizing on ICT advantages. The Komatsu Group is working to expand business by meeting mining customers' needs in the long term.