Executives from Japan’s Komatsu Ltd., Milwaukee’s mayor and Wisconsin’s governor formally cut the ribbon Monday in a ceremony that launched Komatsu Mining Corp.
The subsidiary is comprised primarily of former U.S.-based mining machinery and solutions company Joy Global. Komatsu Ltd. acquired Joy Global effective April 5 for $3.7 billion. Komatsu Mining Corp is headquartered in Milwaukee.
Executives said they were satisfied with the acquisition.
“We are happy to welcome Komatsu Mining Corp. to our global family and look forward to working together to offer our customers our full line of mining solutions,” Tetsuji Ohashi, CEO, Komatsu Ltd., said. “We are committed to creating greater value for our customers with advanced technology and innovative solutions.”
Politicians credited the skills and ethics of Joy workers as the draw for Komatsu.
“The fact that Komatsu is making this kind of investment is a reflection upon the quality of the work done here and on the men and women that make some of the best products in the world every day,” Governor Scott Walker said. “I think this is good for the employees here.”
Komatsu spokeswoman Caley Clinton, formerly of Joy Global, said the buyout provided job security to the more than 10,000 former Joy employees. “It has been a tough market,” she said. “Employees are excited about this next chapter and being part of a larger organization and still based here in Milwaukee.”
Ohashi said Komatsu Ltd. is forecasting both commodities and the mining machinery sector to rebound soon. “We are expecting the mining market will bottom out in the near future,” he said.
Joy Global started in 1919 as an underground mining machinery manufacturer based in Pennsylvania. It primarily served coal miners. Started in 1921, Komatsu manufactures a range of heavy machinery for use in several sectors. It reported sales of $16.3 billion for the fiscal year ending March 31.