Komatsu Institutes Power-Saving Measures in Japan

May 24, 2011

Komatsu president and CEO Kunio Noji says Komatsu has already resumed production at all manufacturing plants that were partially damaged by the Great East Japan Earthquake. Komatsu is planning to increase production in the first half period of the current fiscal year compared to the first half period of the previous fiscal year ended March 31, 2011. All plants are engaging in their normal level of production today.

To meet anticipated shortage of electric power during the summer season this year, the plants whose power is supplied by either Tokyo Electric Power Co. or Tohoku Electric Power Co. are planning to cut down their power consumption by around 30% compared to the peak volume consumed in the summer season last year. However, Komatsu needs to ensure smooth supply of construction equipment for use in the reconstruction of the disaster-devastated regions. In this light, Komatsu will promote the following power-saving measures without reducing production volume.

Applicable Plants

Oyama Plant, Tochigi Plant (Oyama City, Tochigi Prefecture), Ibaraki Plant (Hitachinaka City, Ibaraki Prefecture), Koriyama Plant (Koriyama City, Fukushima Prefecture) and Shonan Plant (Hiratsuka City, Kanagawa Prefecture).
1) Use of power generators and co-generation systems for in-house power generation
2) Partial lighting, temperature adjustment of air conditioning systems, reduction of vending machines and other power consumption-related measures
3) Use of production capacity of other plants which are not adversely affected by power shortage
Through these measures, Komatsu believes that it should be able to cut down power consumption by around 30% compared to the peak volume consumed in the summer season last year, and avoid reduction of planned production volume at the same time. Accordingly, Komatsu is not planning to cut down the number of work days or change work schedules at all plants in Japan.

Head Office (Tokyo)

Although the head office consumes far less electric power than plants, Komatsu will also decrease power consumption by around 30% at the head office in order to fulfill a part of its corporate social responsibility. Komatsu has already taken a variety of measures at the head office, such as partial lighting and temperature adjustment of the air conditioning system. However, Komatsu is not able to use alternative power source facilities, such as power generators, at the head office. To achieve the target of about 30% reduction of power consumption, Komatsu is planning to set one extra holiday during the week in addition to Saturdays and Sundays for the coming three months of July through September this year. Specifically, Komatsu plans to eliminate power consumption of every floor of the head office building by taking turns. Employees will use their paid vacation days or work on national holidays to make up for the days they don't work under this plan. More specific measures will be decided in management-labor union discussions.

To minimize any possible trouble for stakeholders outside of Komatsu, the concerned departments will notify them of the specific schedule as soon as it is finalized.