By analyst
By Andrew Topf
Executives, elected officials and hundreds of Milwaukee-area employees today celebrated the official launch of Komatsu Mining Corp., a global mining equipment and services company operating as a subsidiary of Komatsu Ltd., based in Japan.
Komatsu America Corp., a subsidiary of Komatsu Ltd. completed its $3.7 billion acquisition of Milwaukee-based Joy Global Inc. on April 5, and at that time announced its intention to rename the 133-year-old company Komatsu Mining Corp.
“These kinds of mergers always produce some anxiety and concern going forward, but we didn’t buy this company to close it up. Quite the contrary. There’s huge experience here, more than 100 years worth. We want to capitalize on that and make it grow”: Komatsu Mining CEO Jeffrey Dawes
Before acquiring Joy Global, whose shares have been delisted from the New York Stock Exchange, Komatsu only made surface-mining equipment, while Joy was the largest independent manufacturer of machines used underground.
The deal was Komatsu’s biggest-ever acquisition since it was formed in 1921. The two combined companies have some 60,000 employees worldwide.
Jeffrey Dawes, the new chief executive of Komatsu Mining Corp., told the assembled guests that Komatsu has no plans to close the Joy Global plant in Milwaukee, which has nearly 1,000 employees. In 2016 Joy Global laid off 130 employees at the same location as today’s ribbon-cutting ceremony attended by Wisconsin Gov. Scott Walker and Milwaukee Mayor Tom Barrett.
“These kinds of mergers always produce some anxiety and concern going forward, but we didn’t buy this company to close it up,” Dawes told reporters at a news conference. “Quite the contrary. There’s huge experience here, more than 100 years worth. We want to capitalize on that and make it grow.”
The merged company said it will continue to promote and invest in the Joy, P&H and Montabert brands.
“The P&H, Joy and Montabert products align perfectly with existing Komatsu offerings, allowing us to provide customers with a full set of solutions,” said Komatsu President and CEO Tetsuji Ohashi. “But it is the people behind the product lines that will truly make our integration a success. We are very excited to welcome more than 10,000 employees with deep knowledge and understanding of the mining industry, and a commitment to service and safety. This brings great opportunity for us to expand upon the direct service approach and, together, bring products to market faster, fully appreciated by customers.”
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Source:: Infomine
The post Renamed Joy Global officially launched as Komatsu Mining Corp appeared first on Junior Mining Analyst.