Komatsu GE Mining Systems will be located at the GE Transportation facility in the US and operations will begin in April 2014. Each partner will own a 50 stake in the new company.
The companies believe they will meet the needs of their customers and partners worldwide by combining their expertise in mining equipment and propulsion systems. In the past, Komatsu and GE Transportation have been partners for Komatsu?s electric dump trucks for use in open-pit mines. GE has supplied the electric drive systems.
By building on the existing partnership, the new company will combine GE?s electric power expertise, electric drive systems and battery technologies with Komatsu?s vehicle and ICT technologies for mining equipment to deliver innovative solutions to global mining customers.
Strong sales results
The formation of the new venture coincided with Komatsu?s announcement of its sales results for the first nine months of the fiscal year. The company?s fiscal year ends on 31 March, 2014.
Komatsu reported net sales of $US13.6 billion, up three per cent over the same period in 2012. Its operating income rose 10 per cent to $US1.6 billion.
Komatsu attributes the gains to increased demand for construction equipment in Japan and China as well as other regions.
The Construction, Mining and Utility Equipment division saw net sales of $12.2 billion, an increase of 3.6 per cent.
Sources: Komatsu, GE, Aggregate Research