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Komatsu to set up plant in South Africa to battle Chinese rivals

Strong demand for infrastructure investment attracts heavy equipment makers

Construction machinery maker Komatsu thinks the African market has plenty of room for growth, thanks to heavy demand for infrastructure. (Photo by Wataru Ito)

TOKYO -- Japanese construction machinery maker Komatsu looks to build a plant in South Africa that will refurbish construction and mining equipment by June 2020, Nikkei learned Thursday.

The move is part of the company's expansion drive in Africa as it aims to boost sales of high-margin mining machinery on the continent. It comes as Komatsu faces off against rivals such as China's Sany Group and Caterpillar of the U.S., which have increased their sales in Africa.

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