We are beginning to start production gradually at our plants in the areas affected by the earthquake. The latest conditions are described below.
1. Employees and their families
We have confirmed the safety of all employees of the Komatsu Group. However, there are a few employees who cannot confirm the safety of their family members and relatives. As our top priority task, we are continuing to look into their safety.
2. Sales, service and other bases in the affected area
As reported in the news release of March 14, some bases in the Tohoku area have been seriously damaged by tsunami. We believe it will take some time for their full recovery to normal levels of operation. In this area, we are supporting affected employees to rebuild the foundation of their daily living, while starting assistance to reconstruction of the affected areas.
1) We are making progress in repairs and inspection at our plants in the affected areas, and we are beginning to gradually resume production at these plants. (See the next page for more information.)
2) Concerning our suppliers who have been adversely affected, we are continuing our support of their inspection and repairs of facilities and equipment for their recovery. However, we are anticipating that our procurement of parts and so forth will remain unstable into the next and following weeks.
3) Although we are projecting that our production will be affected by a variety of factors, such as future power supply in the affected areas, aftershock possibility and the nuclear plant problem in Fukushima, we are making group-wide efforts for full recovery of our operations.
4. Business results for the current fiscal year (ending March 31, 2011)
While we are going to record unexpected expenses related to these recovery efforts, we are projecting that these expenses will have only small impact on the business results.
KOMATSU Corporate Communications