Capital Equipment News January 2019

The 300 000 m² development also incorporates Komatsu’s state-of-the-art workshop.

remanufacturing centre first to cater for the growing trend towards extending the lifecycles of earthmoving equipment. At the time of these plans in 2014, capital equipment sales constituted about 80% of the total business, while aftermarket contributed 20%. By 2015, the market fell and Komatsu’s business contracted by 38% compared with the previous year. This also saw the structure of the business spinning around, with capital equipment sales only constituting 28% of Komatsu’s business by 2017, and the rest coming from aftermarket. “The first target was to build the remanufacturing centre. However, in 2015, the mining market dipped and we put the plans on hold. We saw the need to build the parts centre first due to the growth of the aftermarket side of the business,” explains Blom. In conclusion, Blom says the main drivers behind the development were the creation of a safe, pleasant and modern working environment for employees and the delivery of enhanced operational efficiencies. “These will have a positive impact on the levels of service and support provided to customers through improved logistics, workflow and communication,” says Blom. “Africa, and South Africa in particular, have become an integral part of our global business. South Africa is not only our biggest yellow metal equipment market on the continent, but also the base from which our operations in nine separate countries across southern Africa are driven,” concludes Ohashi. b

The development serves as the launching pad for Komatsu to meet its objective of growth through innovation.

ceremony hosted at the Sedibeng TVET College, during which Higher Education and Training Minister Naledi Pandor delivered the keynote address. Blom highlights that the initiative is a sterling example of the private and public sector coming together to uplift local communities. “While our industry is dependent on technology and innovation, everything begins with people, which means that human resource development is critical. I am absolutely convinced that, with the support of all stakeholders, we will succeed in this initiative.”

conditions in the mining and construction markets, Komatsu remains committed to the future of South Africa and the region at large. As a result, further investments are planned for the near future. Blom notes that construction of a technically advanced component remanufacturing facility will begin in 2019 and is set for completion the following year. The reman centre will be built at a projected cost of R272-million. Construction of an undercarriage repair facility will also commence in 2020, and will be completed in 2021. It is projected to cost around R40-million. Blom says initially Komatsu Africa Holdings had its eyes on developing its

Further investments Despite the current tough trading

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