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Following Russia's invasion of Ukraine in February, Komatsu,
which also competes with Sany Heavy Industry and Hitachi
Construction Machinery Co Ltd, halted shipments to Russia as
well as local production but still offers maintenance services
for its machinery already in the country.
Komatsu has a manufacturing plant in Yaroslavl, Russia.
"At the moment, like we said in April, we are not considering
withdrawal. But various developments could take place as we go
forward," Komatsu Chief Executive Hiroyuki Ogawa told reporters
in an online interview.
"There may come a time when we will 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.
Komatsu in October posted a 75% jump in net profit for the first
half of the current business year thanks to strong heavy
machinery demand and a softer yen, and raised its full-year net
profit forecast by 32% to a record 298 billion yen ($2.21
billion).
Ogawa warned, however, that global demand will likely slow in
the next business year due to higher interest rates, inflation
and slower economic growth.
"I don't necessarily think demand in the next business year will
be good when compared with this year's," Ogawa said.
He also said Komatsu has no plan to pull out of 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revenue, although it has practically withdrawn from armoured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...We are conducting the
operation as our way of contributing to national defence, and we
will keep on doing it," Ogawa said.
($1 = 134.9800 yen)
(Reporting by Kiyoshi Takenaka; Editing by Kirsten Donovan)
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