According to Komatsu's official website, on March 19, Komatsu Mining Co., Ltd. (KMC), a wholly-owned subsidiary of Komatsu, has signed an agreement to sell the conveyor business in the United States and Australia to Stlex Capital of the United States.
Stllex Capital is an American investment company for small and medium-sized companies with potential for improvement and growth.
The sales target is the subsidiary company of KMC manufacturing conveyors-the American base (Winfield, Alabama, USA) and the Australian base (Charlesby, New South Wales, Australia). The UK base, which mainly produces conveyors used in tunnels and general engineering, is not the target of this sale.
With this acquisition, Stllex Capital will establish a new material handling business company and will seek new possibilities and development in the conveyor business with the Continental brand held by KMC in the past.
At present, although the demand for mining machinery from hard rocks such as iron, copper and gold is still strong, the coal business continues to shrink due to the global de-coaling trend and low fuel coal prices. The sale is one of the structural reforms of the underground coal (soft rock) mining machinery business. Komatsu will achieve a solid profit structure and business structure through this sale to achieve the sustainable development of the Komatsu Group.
The goal of this case is to complete the sale within the 2020 fiscal year (April 1, 2020 to March 31, 2021). There will be no impact on the supply of customer products of the company to be sold, and this matter will have little impact on the consolidated financial performance.
