Founded in 1921 in rural Komatsu, Japan, the Komatsu Group has rapidly evolved into the world’s second largest construction equipment manufacturer since its internationalisation in the 1960s. In the “Japanese metropolis” of Düsseldorf, the subsidiary Komatsu Germany is now the largest local Japanese employer where some of the largest excavators in the world are manufactured. Since its beginnings, Komatsu has pursued the goal of setting new technological standards and making a positive impact on society through exceptional safety and quality standards. J-BIG spoke to Ansgar Thole, Managing Director of Komatsu Germany, about how Komatsu has developed over the decades, what role acquisitions play in their internationalisation – and what significance the ‘Komatsu Way’ holds for the further development of the company.
J-BIG: How was Komatsu originally founded?
Ansgar Thole: More than 100 years ago, in 1921, our company Komatsu was founded by Meitaro Takeuchi near the town of Komatsu. In this very rural area of Ishikawa Prefecture, there was a copper mine which, as a major employer, was of central importance to the local population. Takeuchi initially ran a workshop repairing the copper mine’s coolers. He eventually took over the mine in 1902, implementing projects to mechanise the mining processes and purchasing machinery to improve the mine’s efficiency. At the end of the 19th century, many large companies were established in Japan to advance the country technologically.
Our founder was an entrepreneur with an extraordinary humanitarian vision, committed to improving the quality of life in his community and determined to bring the latest industrial technology from abroad to Japan to help build a competitive industrial nation. Takeuchi knew that the copper deposits in the mine would soon be exhausted. So he set up a company specialising in the maintenance of mining equipment. In May 1921, he brought together a group of investors and spun off the company into Komatsu Ltd. The new company began manufacturing cast steel products, providing work for many people who had been dependent on the now depleted mine.
Until today, Komatsu remains dedicated to its core principles: quality is always our top priority. We continue to drive technological progress while fostering the development of our people. These values are deeply embedded in our DNA, shaping everything we do. At Komatsu, the pursuit of innovation and excellence is our commitment to society on both global and local levels. This commitment is embodied in our brand promise, “Creating Value Together.” Today, we carry this mission forward from our headquarters in Tokyo, a global journey that began in the town of Komatsu.
J-BIG: How has the company developed since its foundation?
Ansgar Thole: With the development of an extensive product portfolio for a wide range of industries, Komatsu initially became a broad-based company. Komatsu set out early on to position itself globally, entering the North American and European core markets with its products at an early stage. Komatsu America was the first subsidiary to be established. Komatsu Europe followed already at the end of the 1960s. Another important step was the establishment of a factory in the UK. Later, a company was acquired in Italy, where Komatsu now produces utilities, the smaller construction machines, for the European market.
In the 1990s, Komatsu sharpened its focus on construction machinery and expanded globally, often through acquisitions. In 1989, Komatsu acquired Germany’s Hanomag, establishing a production base for small and larger wheel loaders. Soon after, Komatsu acquired Dresser in the U.S., where large mining trucks are now produced. In 1996, the company took over Demag’s Düsseldorf plant, fully rebranding it as Komatsu Germany by 1999. Komatsu’s expansion continued in 2015 with the acquisition of Germany-based Lehnhoff.
Today, Komatsu is a global network of companies united by a common strategy, where each acquisition is developed to serve a unique role within the group. Rather than simply acquiring know-how or patents, Komatsu invests in each company to enhance its strengths and integrate it into a cohesive, global mission.
J-BIG: What led you to join Komatsu?
Ansgar Thole: I hold a degree in business administration and an MBA from Canada, and my journey with Komatsu began in 2010 after gaining valuable experience in various roles within German industry. Starting with purchasing and later moving into supply chain management, I was able to contribute to the growth and success of Komatsu Mining Germany. In 2019, I became part of the management team, initially overseeing the Mining Division. Then, in 2022, I took on the privilege of leading Komatsu Germany as a whole. Innovation and leadership is what drives me and I am proud to continue shaping the future of Komatsu.
J-BIG: How is Komatsu positioned in Germany?
Ansgar Thole: Komatsu Germany consists of three divisions, two in Düsseldorf and one in Hanover. Here in Düsseldorf we have the smallest division, KGI, Komatsu Germany Industries. KGI is a service organization working within Komatsu’s industry segment and maintains all machine systems here in Europe, provides services and supports new sales. Komatsu Industries’ product range is mainly focused on automotive presses, which are long, large press lines found in automotive plants.
At the same time, here in Düsseldorf we also have the largest unit, the Mining Division, with around 870 employees, covering the complete cycle from development, production, sales, marketing, and aftermarket support of heavy hydraulic mining excavators for open-cast mining. This means that we are responsible for the weight classes from 250 to 800 tonnes.
The third division is located in Hanover: the former Hanomag, which is now also called Komatsu. This division specialises in the production of wheel loaders and mobile excavators that are used in traditional road construction on tyres and not on tracks. This is a unique feature in Europe, especially in Germany. The focus in Hanover is on the manufacturing of these machines and the local adaptation of Japanese machines to EU directives.
Safety and efficiency are at the centre of the further development of our products and of our company as a whole. Komatsu has always been committed to safety, which is also reflected in our internal policy ‘SLQDC’ (Safety, Law, Quality, Delivery and Cost). This applies not only here in the factory, but also to safety when handling our products in the field. In the mining sector, the big challenge for the future is the operation of machines without people, in other words the use of remote-controlled or autonomous machines. For maintenance, we need to develop technologies that remove people from harm’s way. Automation and electrification are therefore important topics. Komatsu is a world leader in the use of autonomous trucks, and for more than 40 years we have offered all our hydraulic mining excavators in an electric version. At the MINExpo in 2021 which is the largest mining show in the world, held in Las Vegas, we presented a 700-tonne machine that can be remotely controlled over several hundred kilometres. We are also the world leader in large electrically powered hydraulic mining excavators and currently have more than 170 of these deployed to mine sites all over the globe.
J-BIG: Are the electrically-driven excavators powered by batteries?
Ansgar Thole: As there is not enough space for batteries at this power density, these machines are not battery-powered, but have a cable drum at the rear and can then be moved about 150 to 200 metres away from the socket, depending on the model, which is sufficient due to the small amount of driving and movement. Not only is this the lowest-emission option, it is also the most cost-effective, as there are no components required, such as those for diesel-powered equipment. There are also no filters to get dirty. The motors last much longer, require less maintenance and electricity is generally the cheaper power source compared to conventional diesel drives.
However, with ever stricter emission regulations in cities, battery-powered machines are definitely an area of interest, and Komatsu has recently launched the first battery-powered excavator in the 20-tonne class. There will be more and more battery-powered machines, especially in the utility sector, such as the very small excavators often seen in gardening. This also makes sense because the working cycles can be easily coordinated with the charging cycles.
J-BIG: What is the size of Komatsu’s workforce in Germany, and what is the company’s turnover?
Ansgar Thole: Under the name Komatsu Germany, we employ around 1900 people. Turnover is around 750 million euros. Between 700 – 750 employees work in Hanover. In Baden-Baden we have a smaller unit, Lehnhoff, which does not operate under the Komatsu brand name, with a further 250 employees. In Düsseldorf, Komatsu has 870 employees, making it the largest Japanese employer and the largest Japanese company in the city.
J-BIG: How are responsibilities distributed in Germany?
Ansgar Thole: Komatsu Hannover Construction manufactures products for the European market, some of which are also sold on the non-European market. Here in Düsseldorf, we are 100 per cent export-orientated and serve our global customers. This means that all our excavators are built in Düsseldorf, then shipped in large individual parts to some of the world’s most remote mines, where they are expertly reassembled into high-performance machines. Thus we don’t have any customers in Germany because our machines are only used in such large mines or quarries, which don’t exist in Germany. As for the construction equipment sector, the machines are marketed via KEISA, Komatsu Europe in Brussels, and sales in the various European countries are then handled by local dealers.
J-BIG: What makes the Düsseldorf location advantageous, even when some of your products aren’t sold on the German market?
Ansgar Thole: The reason for the Düsseldorf location can be clearly traced back in the company’s history. Originally, the site in Düsseldorf was home to the Carlshütte, which was taken over by Demag in 1925 and has been manufacturing Demag excavators ever since. Initially, these were crawler cranes. In 1954, the world’s first hydraulic excavators were built here. At that time, these excavators were among the few that had a so-called front shovel, which allowed them to excavate forwards. This is why our site specialises in excavators for open-cast mining.
What’s more, we have an industrial cluster here with all the expertise needed to develop and maintain these machines. The hydraulics industry is strong in Germany and provides the basis for technological advancements. There are four or five global players in our market segment. Until recently, three of them were based in Germany: Liebherr, Komatsu here in Düsseldorf and the former O&K, later Caterpillar, in Dortmund.
It is unique within the Group that, for historical reasons, we have all the expertise for mining excavators and hydraulic excavators here in Düsseldorf. This means that we have development, sales, service and, of course, production here. This gives us many advantages, as our flat hierarchies allow us to make quick decisions, which also benefits our customers.
J-BIG: What role does the Japanese work culture play for Komatsu Germany?
Ansgar Thole: I would say that we have a good mix of Japanese and German working cultures here in Germany as we share a strong foundation of values, for example the focus on the long-term and sustainable development of companies. This way of thinking forms a good basis between our German and Japanese management.
One central element of our corporate culture is a strong sense of quality awareness. Problems are considered in detail and thoroughly analysed using specific, generally accessible methods. A deeper understanding always includes looking at what happens at the place where our products are used. This place of operation is called ‘Genba’ in Japanese, and this Japanese principle behind it also plays a major role for us in Germany. We take a very close look at where our products are used and what challenges await the user who works with the product on a daily basis. We translate this into technical criteria and finally into product specifications in order to provide a sustainable solution.
We follow the so-called ‘Komatsu Way’ throughout the Group, which was developed by our Japanese headquarters. In the 1990s, Komatsu acquired many companies and was thus confronted with different cultures and influences. The challenge was to unite these and develop a common strategic goal and understanding. During this time, the Komatsu Way was developed, which essentially forms the strategic and, to some extent, operational framework for all Komatsu companies worldwide.
J-BIG: What is the Komatsu Way?
Ansgar Thole: The Komatsu Way is a collection of behaviors and values that we live by within the Group and want to pass on to our employees. It is not so much a detailed description of processes as a fundamental reflection on how we have behaved in certain situations in the past, what we have learnt and what we want to take with us into the future.
J-BIG: How is the Komatsu Way communicated to employees?
Ansgar Thole: On the one hand, we have the purely educational seminar aspect. For the management, there are regular courses in Japan where the participants are put together in culturally mixed groups. These courses are compulsory in Japan for management and beyond.
However, it is even more important to us that the Komatsu Way is integrated into everyday working life. This means that managers exemplify the values and employees apply the methods and principles in their daily work. One aspect, for example, is the service concept: if there is a problem with our machines, our top priority is to satisfy the customer and get the machine running again quickly. Only then would I move on to supplying a new customer or concentrating on new tasks.
J-BIG: What does the cooperation between the German subsidiary and the Japanese headquarters look like?
Ansgar Thole: Communication within Komatsu varies by location. In Hanover, reports for construction machinery are sent to the European headquarters in KEISA and then to Japan. As Mining makes up to 40 percent of our group sales, our Düsseldorf operation is having regular collaboration including quarterly strategy meetings with the teams in the U.S. and Japan.
J-BIG: What role do expats play in your company?
Ansgar Thole: We have expats in certain functions, be it in design, development, finance or production, to ensure synergies within the Group. They take on division-specific tasks and ensure that we achieve the best possible results within the Group.
J-BIG: How is the economic climate in the construction industry influencing Komatsu’s business?
Ansgar Thole: The economic cycles for construction machinery differ significantly from those for mining, which benefits us as Komatsu Germany in Düsseldorf. Hanover, on the other hand, is currently feeling the effects of the weak construction industry. However, the decline is not as severe as in the construction industry itself, as excavators are also needed for many infrastructure measures.
In the European market environment, there are many infrastructure projects that will create demand for construction machinery. In turn, other industries are relevant for wheel loaders, such as waste recycling or the use as timber loaders. In the mining sector, we have a stable market environment and are positive about the future, as we expect the global demand for raw materials to continue to grow. The transformation of national economies will require additional raw materials such as copper, ores, rare earths, lithium and nickel. As society evolves with new technologies, these materials will remain essential to shaping the future of modern life.
J-BIG: What challenges does Komatsu face?
Ansgar Thole: Finding qualified technical specialists is a constant challenge, especially as we seek electricians, mechatronics engineers, and welders to support our operations. Our machines are built to last, with a design life of 10 to 15 years, often running 24/7. While we aim for 15 to 20 years of service, 10 years is the minimum. Achieving this level of durability requires mastering key technologies, which is why we maintain our own steel construction, cylinder, and undercarriage production. These are foundational technologies that ensure the quality of our products. We actively recruit, train, and partner with schools and educational institutions to spark interest in these vital professions. It’s an ongoing challenge to secure the right talent, but it’s essential to our success.