Komatsu to build 3 new plants in China

Komatsu Ltd, one of the world's leading manufacturers of earth-moving equipment, has disclosed its plan to set up three new plants in China, fuelled by the region's robust demand for excavators and mining machinery, market sources reported.

The three new plants will include two construction machinery plants and one casting parts factory. Analysts estimated that the firm would invest at least ? billion for new plants' construction work, which is expected to begin in April 2009.

"We expect continued growth in infrastructure and construction demand in China, and sooner or later our production capacity will hit the limit," said the firm's spokesman. Currently, Komatsu has entered into talks with local companies to buy land for one of the new plants.

Amid of the rapid urbanization in China, the company aims to increase its annual production capacity for hydraulic excavators to at least 16,000 units by 2010-11 in the region.

Headquartered in Tokyo, Komatsu Ltd has 146 subsidiaries and 42 associated companies worldwide. Its businesses are primarily engaged in construction, mining and industrial equipment.