Manufacturers halt business in Russia

By Mike Hayes and Jenny LescohierMarch 08, 2022

Hitachi Construction Machinery, Komatsu and JCB have all announced decisions to suspend operations in Russia until further notice

Construction equipment manufacturers are joining the surge of companies shutting down their operations in Russia.

CaterpillarHitachi Construction Machinery, Komatsu and JCB have all announced decisions to suspend operations in the country until further notice.

In a statement, Caterpillar announced it’s suspending manufacturing in Russia.

“Operations in Russia have become increasingly challenging, including supply chain disruptions and sanctions, and we are suspending operations in our Russian manufacturing facilities,” the statement reads.

“We are deeply saddened by the tragic events continuing to occur in Ukraine and hope for a peaceful resolution to the crisis. Through the Caterpillar Foundation, we are donating more than $1 million to support both urgent and long-term needs of the Ukraine humanitarian crisis.

Meanwhile, the company says its complying with all applicable laws and evolving sanctions, while remaining focused on employees, dealers and customers.

“We recognize this is a time of incredible uncertainty for our valued employees, and we will continue to look for ways to support them,” the company stated.

Hitachi Construction Machinery said it is ceasing operations, but will continue to monitor developments in Russia and Ukraine, in the hope of a peaceful resolution.

“Our highest priority is on the safety of our stakeholders, including our group employees and their families, customers, dealers and supply chain partners,” Hitachi said in its statement.

“Hitachi Construction Machinery has made decisions to gradually stop production at Hitachi Construction Machinery Eurasia LLC, its regional headquarters responsible for manufacturing and sales in Russia and the Commonwealth Independent States (CIS), and halt exports from Japan to Russia until further notice, because of the potential risks associated with the business.

“We are committed to making the appropriate decisions as possible based on collection of information and close communication with our bases worldwide.”

Pressure grows on Russia

Komatsu said it was suspending shipments to Russia because of “the current supply chain disruption and the uncertainty of the financial and economic situation.”

The company has set up an emergency task force, headed by its president and CEO, Hiroyuki Ogawa, to gather information and discuss any future measures.

The company said, “Komatsu is deeply concerned about the current situation in Ukraine and is closely monitoring developments. The company sincerely hopes that the situation is settled peacefully as soon as possible.”

Earlier last week, JCB said it had “paused all operations [in Russia], including the export of machines and spare parts.”

For more information on the unfolding situation in Russia and Ukraine and its effects on construction, visit this rolling news from our colleagues at KHL here.

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