Africa and Middle East gains ease Komatsu’s China concerns
The gap between sales of Komatsu equipment in the Middle East and Africa region and China continued to close in May as Chinese sales fell for the 14th consecutive month. Sales of Komatsu equipment in Africa increased by 82% in May and the world’s second largest construction machinery company also saw gains of 19% in […]
The mining sector helped Komatsu sales reach $21.6 billion in 2011
The gap between sales of Komatsu equipment in the Middle East and Africa region and China continued to close in May as Chinese sales fell for the 14th consecutive month.
Sales of Komatsu equipment in Africa increased by 82% in May and the world’s second largest construction machinery company also saw gains of 19% in year on year sales in the Middle East.
Sales of construction equipment to the Middle East and Africa reached $1.6 billion in 2011 up from $1.3 billion in 2010. At the same time sales in China fell from $4.2 billion to $2.5 billion.
Despite analyst Freedonia predicting last week that construction activity will stay at 8.5% through to 2020 in China, companies like Komatsu have been frustrated by tightening government purse-strings and a slow-down in residential building.
It may be struggling in the country but Japan’s Komatsu is still revered among Chinese manufacturers for its progress in global markets.
A report by Wu Huimin, analyst at China International Capital Corporation, said Chinese companies should follow Komatsu’s example on the international stage.
“A low level of market consolidation, simple product structure and low sales in overseasmarkets – these are the characteristics of China’s construction machinery sector,” said Wu. “For further development, Chinese companies should follow Komatsu’s model by improvingproduct quality and becoming more internationally competitive.”
