Komatsu Utility Co Ltd is investing JPY3.2 billion (USD30.7 million) to restructure its Japanese operations in a bid to boost production and operational efficiency.

In April 2007, Komatsu Group merged Komatsu Forklift Co Ltd and Komatsu Zenoah Co forming the utility equipment business, Komatsu Utility (Forkliftaction.com News #294). The latter now produces forklifts and mini hydraulic excavators in the same line at a Chinese plant, and forklifts and mini wheel loaders in the same line at the Tochigi plant.

Komatsu will transfer the production of mini hydraulic excavators from the Kawagoe plant in Saitama prefecture to the Tochigi plant, to consolidate domestic production. Komatsu Utility will also relocate its head office from Tokyo to Tochigi to promote operational efficiency.

Prior to this, Komatsu Utility will transfer its large forklift production to its Mooka plant where articulated dump trucks are produced. Powertrain components like axles and transmissions will have their production transferred to the Mooka and Awazu plants, where corresponding components for construction equipment are manufactured.

According to Komatsu Utility, it has no plans for the future use of the Kawagoe plant after the production transfer. It adds that the restructuring will have "minimal" impact on Komatsu's consolidated business results.

Komatsu Utility, headquartered in Minato-ku, Tokyo, had sales of JPY187.1 billion (USD1.79 billion) for the year ended 31 March 2008. It employs 3,734 people.