Komatsu says no plan to exit Russia

TokYO Reuters -- Komatsu Ltd, the world's second-largest construction machinery maker after Caterpillar Inc, has no immediate plan to withdraw from its Russian operations and does not rule out exiting the country in the future, it said on Monday.

Following Russia invasion of Ukraine in February, Komatsu, which also competes with Sany Heavy Industry and Hitachi Construction Machinery Co Ltd, stopped shipments to Russia as well as local production, but still offers maintenance services for its machinery already in the country.

We are not considering a withdrawal at the moment, like we said in April. Komatsu Chief Executive Hiroyuki Ogawa told reporters in an online interview that there were various developments that could take place as we go forward.

We may come to a time when we need to decide whether or not to withdraw from Russia. But that's not something we are considering at the moment. Russia and other countries in the Commonwealth of Independent States CIS accounted for 7% of Komatsu's heavy machinery sales in the year to end-March 2022.

Ogawa said that I don't think demand will be good in the next business year, compared to this year.

He said that Komatsu has no plans to withdraw from its ammunition business, which he said accounted for less than 1% of total revenue, although it has practically withdrawn from armoured vehicle operations.

As for our ammunition business. Ogawa said that we are doing the operation as a way of contributing to national defence and we will keep doing it.