Mining slowdown equals sales slump for Komatsu

Komatsu’s sales in China have taken a dramatic tumble amid
slowing Asian demand in the mining and construction sectors.

Sales in China for the world’s second largest maker of
mobile plant fell 20 per cent in April/May on the previous year.

Komatsu CEO Tetsuji Ohashi said delays to the start of some construction
projects were to blame, but also that the bottom of the market demand for
mining equipment could be “very close”.

Ohashi said that even without flattening and recovery in
demand leading to March 2015, he expects more companies will seek quotes for
products.

“They cannot miss investment timing for their growth,” he
said in an interview with Bloomberg.

Komatsu’s direct competitor Caterpillar reported a 30 per
cent fall in sales in the Asia Pacific region for the three month period
through May.