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.