Komatsu Competes With Chinese Construction Machinery Companies In The Indonesian Market

Nikkei Chinese website news on May 10, Japanese construction machinery manufacturer Komatsu recently released January-March 2021 consolidated financial report (US Accounting Standards) shows that net profit is 2.2 times that of the same period in 2020, reaching 40.2 billion yen. What becomes important in predicting Komatsu's 2021 fiscal year performance is the Indonesian market, the largest in Asia outside of China. Indonesia’s nickel production and infrastructure development are increasingly active, but Chinese companies such as Sany Heavy Industries are also launching an offensive.

From Komatsu's point of view, the purchase of hydraulic excavators and mining machinery in Indonesia has increased. Komatsu's construction machinery operating income in Asia (excluding Japan and China) is expected to increase by 70%. In addition to housing and infrastructure development in North America and Europe, the demand for mining machinery in Central and South America has also become a positive factor. In Indonesia and other places, Komatsu will launch construction machinery that is about 1 to 20% cheaper than the original products from 2021.