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Lift truck news: Komatsu announces consolidation and restructuring of North America manufacturing operations

Jeff Berman, Group News Editor -- Modern Materials Handling, 3/11/2009

Forklift manufacturer Komatsu said this week it is consolidating and restructuring its North American manufacturing facilities for Komatsu Forklift U.S.A. in Covington, Ga., and Komatsu America Corporation in Rolling Meadows, Ill.

Komatsu officials said that Komatsu’s forklift production operation will be moved from Covington, Ga., to Komatsu’s Newberry Manufacturing Operation in Newberry, S.C. They said move will allow Komatsu to take advantage of available synergies, reduce overall operational expenses, and more effectively utilize assets. And they also explained that Komatsu America Corporation and its production teams have many years of experience in running a number of world class manufacturing operations, and will be able to use their expertise to improve manufacturing efficiencies and improve Komatsu Forklift’s cost competitiveness in the marketplace.

Komatsu first began assembling forklifts in the United States in 1976 in LaMirada, Calif., and manufacturing continued in California until the move in 1995 to the current facility in Covington, according to Keith Allmandinger, Komatsu senior marketing manager.

“Komatsu has been committed to building products in the U.S. for over 30 years, and that is not changing,” he said. “Komatsu plans to build the majority of our North American-sold products in this market, just as we have in the past.  That would be what is considered our heart-of-the-line engine powered cushion and pneumatic tire models from 3,000 through 7,000 pounds of capacity.

While this shift in production from Covington, Ga., to Newberry, S.C., is a major endeavor, Allmandinger said it should have no negative impact whatsoever for the Komatsu dealer network or its customers.  

Komatsu America oversees several world-class manufacturing facilities in North America and Newberry is one of those facilities, explained Allmandinger. With the economic downturn, there is excess production capacity within these Komatsu plants and consolidation at this time makes “very good economic sense,” he added, noting that compared to the Covington facility, the plant in Newberry has the larger amount of available space and acreage for future expansion and growth.  

“This move will allow Komatsu Forklift to focus on our sales, marketing, and dealer support efforts in North, South and Central America,” said Komatsu Forklift president Akira Yamakawa in a statement. “In these difficult economic times, we see this as a necessary move to reduce our operational costs and better meet the needs of our dealers and customers.”

Komatsu officials said that the transition of production from Covington to Newberry will take place over the next 7 to 8 months, with forklift production beginning in Newberry in October 2009. Komatsu Forklift’s parts distribution will be consolidated into Komatsu’s Ripley, Tenn., distribution facility at a time to be determined, and sales, marketing and product support related functions will also be relocated at a later date, they said.

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