Komatsu is to acquire US mining equipment manufacturer Joy Global Komatsu. It announced last week that it has signed a definitive agreement with Joy Global Inc., a leading manufacturer of surface and underground mining equipment, under which Komatsu America Corp. a wholly-owned subsidiary of Komatsu in the USA, will acquire 100% ownership of Joy Global (hereafter ‘Acquisition’). The Acquisition is expected to close in mid- 2017, subject to the approval of shareholders of Joy Global and the receipt of necessary regulatory approvals under laws in relevant countries.
Komatsu embarked in April on a mid-range management plan for the next three years (2016-2018) under the slogan ‘Together We Innovate GEMBA Worldwide – Growth Toward Our 100th Anniversary (2021) and Beyond’. The Acquisition is in line with the growth strategy plan which calls for the Company to strengthen the core mining equipment business in an effort to achieve sustainable growth. Joy Global is a worldwide mining machinery and services company founded in 1884.
Demand for mining equipment has declined dramatically from the peak, reflecting economic slowdown in emerging countries and low commodity prices. Over the long term, however, the mining equipment business is projected to grow, driven by population growth and rapid urbanisation around the world. In terms of mining techniques, economic rationale will call for use of larger equipment in surface mining as well as further development of underground mining. Joy Global and Komatsu’s product lines will integrate well, expanding options for customers worldwide, as Komatsu can now offer the underground mining equipment and super large-sized loading equipment of which Joy Global is a leading provider. Both companies value a direct sales and service approach and will continue to engage with customers globally. Merging manufacturing technologies and linking products through Komatsu’s fleet management system will further capabilities on both sides to directly engage with customers to optimize machine performance and enhance automation for safety and productivity gains.
