Komatsu Strengthens U.S. Reman Operations with SRC of Lexington Acquisition

Komatsu is making some interesting moves. The global equipment giant just announced its plans to acquire the assets of SRC of Lexington, expanding its remanufacturing footprint in North America. The deal is expected to close by the end of February 2026, pending standard conditions. From the press release:

“North America is one of Komatsu’s most important markets for both construction and mining equipment,” said Danny Murtagh, Vice President, Parts and Infrastructure, Komatsu North America. “This acquisition allows us to deepen our reman capabilities closer to customers, improve responsiveness, and support dealers and end-users with high-quality, cost-effective solutions throughout the equipment lifecycle.”

This is not a flashy tech acquisition. It is a practical move, and I love practical moves. Komatsu sees growing demand for reman components across construction and mining. The installed base keeps aging. Fleets need quicker repairs. Buyers need economical part options. Recycling is embraced. Reman checks a lot of boxes.

Komatsu’s committed to reman

Komatsu already runs a sizable global reman operation. This deal brings more of that capability closer to North American customers. Since 2010, Komatsu’s reman “transaction volume” has increased roughly fourfold, according to the press release. That growth tracks closely with quarry and mining activity in the region. We’re expecting this acquisition to help Komatsu shorten busy lead times and support dealers without shipping parts halfway around the world. As of 2025, Komatsu’s reman network has grown to 45 locations across 16 countries, but there was only one location in America. Now there are two.

What SRC of Lexington actually does

SRC of Lexington focuses on engineered reman. This is not simple rebuilding. It involves complete disassembly, cleaning, inspection, and updating of components with new parts or engineering improvements. This results in like-new performance. The company supports OEM partners across construction, mining, power generation, and gas compression. Key product categories for SRC of Lexington:

• Hydraulic piston and gear pumps
• Transmissions and torque converters
• Axles, differentials, and final drives
• Engines and engine components
• The facility also operates a robust machining operation. This includes things like block repair and crankshaft machining.

Why reman is cool

Reman is industrial recycling. It keeps massive components out of landfills. It saves raw material. It uses far less energy than producing new parts. For fleets, reman parts can cost a whopping 60 percent less than new parts. It’s cool Komatsu is eyeing reman as a core business, and SRC of Lexington looks like a good snag. From the press release:

“This agreement reflects a shared commitment to remanufacturing excellence, technical expertise, and long-term support for customers,” said Tim Stack, President, SRC Holdings Corp. “Just as important, it reflects our responsibility to do what is right for our people. Becoming part of Komatsu allows the Lexington team to build on over three decades of remanufacturing strength, while providing the investment, long-term support and opportunity needed to carry that legacy forward into its next chapter.”