On March 19th Joint-stock Company, a wholly owned subsidiary of Komatsu, signed an agreement to sell its American and Australian conveyor business to STLEX Capital. STLLEX Capital is a U.S. investment firm that targets small and medium enterprises with potential for improvement and growth. It is intended for sale as a subsidiary of KMC's conveyor line, Florida, USA (Winnfield, Alabama) and Australia (Chartsby, New South Wales, Australia) . The British base, which produces conveyors for tunnels and general works, is not for sale. With the acquisition, stlex Capital will establish a new material handling business and will explore new possibilities and developments in the conveyor business with the Continental brand previously owned by KMC. While demand for mining machinery in hard rocks such as iron, copper and gold remains strong, the coal business continues to shrink due to global decoal trends and low fuel coal prices. The sale is part of a restructuring of the underground coal (soft rock) mining machinery business, through which Komatsu will achieve a solid revenue structure and business composition to achieve sustainable development of the Komatsu Group. The case aims to close the sale within the 2020 fiscal year (April 1 to March 31,20202021) . There will be no impact on the supply of customer products to the business to be sold, and the impact on consolidated financial results will be minimal.
