Demand for forest machines is currently high in several parts of the world, though the greatest increases in demand have been seen in relatively new markets, such as Russia, Indonesia, and South America. In recent times, Komatsu Forest has sold more than 100 machines and 50 harvesting heads to, among others, Tatarstan, Indonesia, and Brazil.
"Business has really taken off in countries where the forest industry is currently undergoing strong development," says Roland Lundqvist of Komatsu Forest.
Komatsu Forest recently signed an agreement with Republic of Tatarstan. It is the biggest single contract ever signed with Russian customer for delivery of forest machines. The contract also includes training of mechanics and operators, simulators and service. The deliveries have already begun. Russia is an enormous market with great potential and doing business in Russia is also of interest as it can lead to future opportunities in the Chinese market.
In Indonesia, Komatsu Forest recently signed an agreement with PT. Riau Andalun Pulp & Paper, with plantations near the equator that include some of the highest-yielding plantations in the world. Via its internal contracting business, PT. Pech Tech Services Indonesia, the company has bought about 50 harvesting heads, which will be fitted to Komatsu excavators.
The South American forest industry hardly felt the financial crisis suffered by the rest of the world a couple of years ago and Brazil has long been the motor of the South American forest industry. Komatsu Forest has signed two major deals, encompassing some 50 machines, service, and training. Demand for forest machines is now on the increase in other South American countries. In Uruguay, for example, Stora Enso and Chilean forest company Arauco are investing in a state-of-the-art pulp mill. The pulp mill is expected to be completed during the first quarter of 2013 and the raw material to be processed at the mill is mostly eucalyptus, which will be sourced from their own plantations. This is a new type of operation that will require great numbers of machines and extensive service and training in the future.