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Komatsu CEO Says Customer Reticence Shows Worsening China Slump

Komatsu Ltd.’s customers in China are reluctant to buy construction equipment because they’re unsure when building projects will start, underscoring the challenges the Japanese supplier and its peers face in a market that’s cooling more than expected.

“Things in China are tougher” than previously forecast, Chief Executive Officer Tetsuji Ohashi said last week in an interview at the company’s Tokyo headquarters. “Customers themselves are unsure of the timing for the start of construction works. It feels like they’ll wait to buy machinery until after they see that projects are underway.”