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    Komatsu Shantui a win-win result for Sino-Japanese cooperation

    chinadaily.com.cn| Updated: June 21, 2021
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    An excavator manufactured by Komatsu Shantui Construction Machinery Co. [Photo provided to chinadaily.com.cn]

    Komatsu Shantui Construction Machinery Co, which is located in Jining, East China's Shandong province, is a hydraulic excavator manufacturer jointly created by Komatsu, a Japanese multinational corporation, and Shantui Construction Machinery Co. It has made great progress since it was established in 1995, setting a good example of cooperation between Chinese and foreign companies.

    The company turned profitable in 1998, three years after it began operation, and its annual sales surpassed 10 billion yuan ($1.55 billion) as early as in 2010.

    Komatsu Shantui's great success is partly due to the efforts made by Jining's local government. During its nascent years when the company was facing financial difficulties, the Jining government worked actively with local financial institutions to provide it with cheap loans. The company is also entitled to tax refunds for its exported products.

    Later, with the help of the administrative committee of Jining National High-tech Industrial Development Zone, the company received its qualification as a high-tech company, which enabled it to only have to pay half of its enterprise income tax.

    In 2008, Komatsu Shantui planned to set up a new plant in Jining to expand its production. To make sure that the project could be finished on schedule, the Jining high-tech zone gave great support in terms of construction, as well as in procuring land and equipment.

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