Volvo Construction Equipment and Komatsu Ltd. initiated discussions regarding future co-operation in the production and development of construction equipment components. Tangible outcomes from the discussions are expected by mid-year 2002. The intention is to determine whether both companies can find ways to strengthen their cost competitiveness and to increase customer satisfaction.

“We believe this co-operation could lead us to find high quality and cost effective solutions,” said Masahiro Sakane, president of Komatsu, and Tony Helsham, president and CEO of Volvo Construction Equipment, in a common statement.

The two companies will not include sales, service, distribution and equity participation in the discussions.