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2010 KOMATSU-PIRTEK Partnership Press Kit



- World-first partnership
- Affordable OE hydraulic hoses
- Significant benefits for customers

Komatsu Australia Ltd. is entering into a landmark partnership with Pirtek Fluid Systems that will revolutionise the supply of hydraulic hose assemblies worldwide.

The 10-year deal is worth more than $100 million and will see Pirtek's share of the OE hydraulic hose business triple within 12 months.

The partnership will grow Pirtek Australia's Komatsu-related business to exceed $14 million annually - directly benefiting Australian communities.

From May 2010, Komatsu customers will be able to access locally-assembled Komatsu genuine hydraulic hoses through any of Pirtek's 88 service centres and fleet of 320 mobile service units.

Pirtek's strategically placed network is able to service over 90 per cent of Komatsu customers within one working day - minimising machine downtime and maximising machine utilisation.

In a world-first arrangement, Komatsu Ltd. in Japan has transferred the intellectual property for the design of its hydraulic hoses to Pirtek Australia.

The Komatsu-specification hydraulic hose and fittings are manufactured exclusively for Pirtek by Bridgestone in Japan.

The arrangement ensures that Pirtek service personnel can assemble genuine hydraulic hose and fittings on-site to Komatsu factory specification.

Each Pirtek service centre or mobile unit will have the correct components to assemble Komatsu hydraulic hoses - to the exact design and specification of the Japanese factory.

By using a detailed design matrix, every Komatsu hose manufactured by Pirtek will meet the Komatsu Engineering Standard (KES).

Komatsu Australia Ltd. president Bill Pike says this unprecedented level of service eliminates the need for a customer to use inferior non-OE hose assemblies.

"KES is a benchmark standard for equipment manufacture - it is one of the hallmarks of Komatsu's quality and reliability," he said.

Komatsu says it has chosen the family-owned and run Pirtek as its hydraulic hose partner because of Pirtek's commitment to quality and its existing relationship with Komatsu customers at an aftermarket level.

Bill Pike says the Komatsu-Pirtek partnership is a new model for Komatsu customer-support operations worldwide.

"Komatsu believes strongly in the philosophy of Kaizen - a process of continual improvement," he said.

"We identified the hydraulic hose program as an area where improvements could be made to the service and support of customers.

"This ground-breaking partnership is significantly beneficial to Komatsu, Pirtek, and most importantly, the customer.

"Using quality genuine parts is critical to the long-term reliability and safety of any machine - and this program makes using genuine hoses both affordable and time-efficient," he said.

Managing director of Pirtek Fluid Systems, Glenn Duncan, says Pirtek's strength lies in its relationship with the worldwide hydraulic industry.

"Pirtek takes pride in its ability to service customers anytime, anywhere," he said.

"We have the ability to source, stock and supply the required hose and fittings through our individually owned franchises - thanks to our long-standing relationship with Bridgestone of Japan.

"Supplying the correct Komatsu genuine hose directly to the customer in the shortest possible timeframe keeps machine downtime to a bare minimum - without compromising the reliability for which Komatsu machines are renowned.

"This level of support is unrivalled within the equipment industry - placing Komatsu customers even further in front," Mr Duncan said.


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- World-first agreement
- Potential global roll-out
- 90 per cent of customers serviced within 24 hours

The Komatsu-Pirtek partnership is a world-first agreement that is poised to shape the way hydraulic hoses are supplied to customers around the Komatsu world.

The partnership with Pirtek means Komatsu customers are assured that a hose assembly will be delivered directly to them within 72 hours of order - with over 90 per cent of customers serviced within 24 hours.

Komatsu Australia's ongoing mission to improve customer service identified the hydraulic hose category of spare parts as an area where considerable gains could be made.

Customers reported downtime related to hydraulic hose failure as a major cause of lost profitability.

Pirtek managing director Glenn Duncan said Komatsu's Japanese management has acknowledged the merits of the partnership, with talks currently underway on a potential global roll out of the program.

"Because of the very similar market conditions in New Zealand, we aim to implement the program there before year's end," Mr Duncan said.

"We are currently exploring South Africa as a place to extend the partnership - once again because of the similarities of their market with Australia."

Komatsu Australia worked closely with Pirtek and Komatsu's engineering team in Japan in developing the partnership.

Komatsu Australia NSW Regional Manager Tom Zube said the arrangement with Pirtek eliminated the need for hose stock to be written off once it has passed it use-by shelf-life date.

"Hydraulic hose assemblies have a limited lifespan when stored in the warehouse," he said.

"The Komatsu Engineering Standard (KES) stipulates a hose must not be used if it has been stored for more than four years.

"By licensing the Intellectual Property of the Komatsu genuine hose assemblies to Pirtek, the correct hose can be manufactured when required - so there is zero stock written off.

"The customer receives exactly the correct hose without having to wait for it to be delivered from a warehouse several hundred kilometres away - which can sometimes take days.

"The partnership is a win-win situation for Komatsu, Pirtek and most importantly the customer," Mr Zube said.

Komatsu says the partnership is much more than an emergency replacement service, with a number of preventative maintenance features being implemented to avoid complete hose failure.

Each Pirtek-manufactured genuine Komatsu hose is marked with an easy-to-identify date tag - so the service life of the hose can be carefully monitored.

The hydraulic hoses of a machine, used in conjunction with the correct Komatsu service regime, can be replaced before a failure occurs.

"The failure of a hose leaves a machine vulnerable to mechanical damage - and more importantly leaking high-pressure hoses have the potential to seriously injure personnel," Mr Duncan said.

"Preventative maintenance can be scheduled at a time that corresponds with normal machine downtime, so no valuable time is lost in the field."


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- Pricing arrangement an industry-first
- Lower operating costs
- Customer-first focus

The ground-breaking new Komatsu-Pirtek partnership not only delivers on quality and customer service, but on Komatsu's commitment to provide spare parts to customers at the best possible price.

Pirtek-manufactured genuine Komatsu hydraulic hoses will be available to customers at a price within 15 per cent of the price of a comparable aftermarket hose.

Komatsu says using genuine parts is the best way to maintain the reliability of any Komatsu machine - minimising downtime and maximising operator profitability.

Komatsu Australia president Bill Pike said Komatsu customers no longer need use cheaper "fit for purpose" hose products.

"Komatsu Australia is driven by the success of our customers and part of that is ensuring their long-term profitability," he said.

"One of the major drivers of the Komatsu-Pirtek partnership was delivering parts to customers at a better price and in a shorter timeframe," Mr Pike said.

"Pirtek, through its relationship with Bridgestone and the geographic coverage of its branch network, is able to provide several logistical cost savings that are being directly transferred to customers.

"As a result, Komatsu customers will receive reliable parts at prices comparable to that of aftermarket parts," he said.

By ordering a Komatsu hose through the Pirtek network, customers will also be able to take advantage of Pirtek's after-sales back-up which is available 24 hours a day, seven days a week.


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- World-class design
- Best in industry quality
- Unrivalled durability and quality

All Komatsu equipment is manufactured to one exceptional standard - the Komatsu Engineering Standard (KES).

Every component used to build a Komatsu machine must adhere to KES - the company's own quality specification - to ensure maximum durability and reliability of the equipment.

The KES is an in-house standard for all companies within the Komatsu Group.

Items and contents among Komatsu's proprietary technologies that are not regulated by the International Standards Organisation (ISO) and Japanese Industrial Standards (JIS) are standardised by the KES.

In many cases KES exceeds the requirements of the relevant ISO, JIS and German Institute of Standardisation (DIN) standards - as is the situation for hydraulic hoses.

KES ensures that Komatsu manufactures equipment with a superior level of quality to meet the needs of the customer.

KES aims to minimise machine downtime - a key factor in ensuring the long-term profitability of any equipment purchase.

"Komatsu machines have long been the choice of private operators and government fleets alike," said Komatsu Australia president Bill Pike.

"Komatsu machines are highly sought after on the used equipment market - keeping resale values high.

"Whole-of-life cost for Komatsu machinery makes it a favourable choice for operators looking to maximise return on their investment," Mr Pike said.

KES also applies to every Japanese-built Komatsu replacement spare part - a standard to which aftermarket suppliers do not have access.

Genuine Komatsu spare parts are designed for ease of fitment. Because they meet KES, they have been manufactured to restore the functionality of the machine to meet the original factory specification.

Bill Pike says using the correct genuine spare parts is the best way to guarantee the ongoing reliability and profitability of any Komatsu machine.

"Aftermarket 'fit for purpose' spare parts simply aren't built to KES - and although they may look identical, the devil is in the detail," Mr Pike said.

"Delivering market best-practice customer service and spare parts support is a cornerstone of Komatsu's commitment, which is to ensure the long-term durability of every machine we sell," he said.

Komatsu Australia's spare parts warehousing operations are a joint venture with Toll Australia.

Warehouse facilities in Sydney, Brisbane and Perth are backed up by Komatsu's 31 branches, 15 contract sites, over 20 residents and more than 280 mobile service units.
The Komatsu-Toll system aims to deliver line item spare parts to customers within 72 hours of placing an order - with over 90 per cent of spare parts delivered within 24 hours.


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- 100 per cent Australian family owned
- Worldwide network of franchises
- $150 million turnover in Australia

Pirtek has invested more than 18 months R&D into forging the Komatsu-Pirtek Partnership.

Pirtek managing director Glenn Duncan said Komatsu has provided over 1200 Komatsu hose designs to his company to initiate the partnership.

"We needed to be able to service as many Komatsu customers in the shortest possible timeframe," he said.

Komatsu customers will be able to source an OE hose assembly directly from Pirtek from May - 90 per cent of which can be supplied within the same working day.

One hundred per cent Australian-owned and operated Pirtek Fluid Systems has recently celebrated 30 years of continued service to the hydraulic industry.

Pirtek Australia has 88 branches in Australia alone, operates over 320 mobile service units and employs more than 700 staff.

Current Australian turnover exceeds $160 million.

Pirtek operates more than 300 branches and 1500 mobile service units worldwide, making it one of the largest suppliers of hydraulic hose to industry.

When Pirtek executive director Peter Duncan moved his family from New Zealand to Sydney in 1979, he changed the face of the fluid transfer service industry.

The rapidly growing company officially became know as Pirtek in 1986 - the same year that the franchising of branches began.

Since then the Pirtek network has built a reputation as one of the strongest franchise networks in the country - and in the world - winning the British Franchise Award in 2000.

Pirtek managing director Glenn Duncan said Pirtek had long focused its efforts on being able to supply the correct hose to customers in the shortest possible timeframe.

"Efficiencies in industry are achieved by minimising downtime - which is why it's important for our branches and mobile service units to have the correct components on hand at all times," he said.

Each mobile service technician is trained to Certificate II in engineering (High Pressure Hose assembly) to ensure Pirtek manufactured hoses exceed industry standards.

This is a nationally recognised qualification issued by the Vocational Education and Training Accreditation Board (VETAB).

Each branch has an accredited trainer for the qualification, and each new team member receives up to eight months on-the-job training.

"Pirtek has invested heavily in this training program, with a dedicated national training manager ensuring the level of service to customers is uncompromised," Mr Duncan said.

"We have been able to further develop strong relationships with our suppliers - like Bridgestone of Japan - by proving we can constantly deliver high-quality hoses to the market.

"This relationship helped Pirtek demonstrate to Komatsu Australia our ability to source, stock and supply the correct components for their hydraulic hose program," Mr Duncan said.

The partnership is poised to return up to $100 million to Pirtek over a 10-year period - raising revenue by up to 20 percent.


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- 1500-plus employees
- 3 distribution centres, 31 branches, 15 contract sites
- $200 million in parts, components and inventory

Komatsu Australia has today re-affirmed its continuing commitment to customers by developing business practices that deliver ongoing efficiencies and reductions in machine downtime.

Komatsu Australia has 31 branches and 15 contract sites, located close to key Australian mining and civil contracting sites.

The company operates the largest factory-backed sales and service network of any equipment supplier in the South Pacific region.

In New Zealand Komatsu operations are based in Auckland, backed by a network of service partners.

Komatsu Australia customers are supported by an investment of more than $200 million in parts, components and inventory control systems.

Throughout Australia, New Zealand and New Caledonia, the company employs over 1500 people, with more than 70 per cent involved in product support activities.

As well as supplying a full range of Komatsu construction and mining equipment, Komatsu Australia distributes Komatsu ground-engaging tools, Komatsu lubricants, Komatsu undercarriage and a full range of genuine spare parts.

Komatsu Australia president Bill Pike said the company defined its mission as delivering the technology, innovation and service that customers need to succeed.
"Our vision is to produce unique machine technologies unrivalled in performance, safety and efficiency for our customers - today and tomorrow," he said.
"Komatsu Australia has looked at a number of ways we can improve our relationship with customers using the philosophy of Kaizen - a process of continual improvement.

"The Pirtek Partnership is a big part of this.

"We are proud to be pioneering the future of customer service right here in Australia."


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Komatsu Australia Ltd. primarily services three sectors of the equipment industry in Australia - the mining market, construction market and smaller utility market.

It fully leverages the global resources of Komatsu Ltd. in Japan to source machines from a variety of manufacturing facilities in Japan, Europe and North America.

Komatsu Ltd. in Japan manufactures the majority of construction and utility machines sourced by Komatsu Australia Ltd.

This includes the range of small and medium size excavators, bulldozers, graders, loaders and diesel direct-drive mining trucks.

The Komatsu-Pirtek partnership will initially focus on the range of Japanese-manufactured machines.

These Komatsu Ltd. machines currently account for more than 83 per cent of all Komatsu machines in service in Australia.

Pirtek managing director Glenn Duncan said the partnership would help Pirtek grow through giving it the ability to service a much wider customer base.

"This is a world-first arrangement pioneered right here in Australia - and I believe it has the potential to change the way in which hydraulic hoses are supplied globally," he said.

"Pirtek is proof that Australian companies have the ability to compete successfully on the world stage - and we're immensely proud to be at the cutting edge of our industry.

"Customers will benefit from the industry-leading six-month warranty on OE hose assemblies, as well as our goal of delivery within 72 hours of placing an order," Mr Duncan said.

"In reality, more than 90 per cent of customers will be serviced within 24 hours."

Komatsu Australia Ltd. sources high-end mining equipment from either Komatsu America Corp. (KAC) or Komatsu Mining Germany (KMG).

This includes a range of mining excavators from KMG and Electric Drive mining trucks from KAC.

Global diversity provides the Australian market with a range of equipment that can be tailored to specific customers' needs.

Every Komatsu machine manufactured globally must meet the stringent Komatsu Engineering Standard (KES) - a principle that also applies to locally-assembled mining equipment shipped to Australia in Complete Knock Down (CKD) kit form.

Every machine must pass KES certification before it can enter service, no matter how remote the assembly pad may be.

Komatsu and Pirtek are working toward broadening the partnership to cover the entire family of Komatsu equipment.

This would see the intellectual property for a further 1000 hoses entrusted to Pirtek Australia.

It is anticipated genuine hose assemblies for KMG and KAC will be available before the end of the year.


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- Best-in-field facilities
- NATA-certified facility
- Hydraulic hoses tested to destruction

Pirtek Fluid Systems has addressed the need for better certification of high-pressure hydraulic hoses through the establishment of its dedicated in-house testing laboratory.

Known as BPI Technologies, the testing facility has been provisioned with state-of-the-art hose-testing equipment at a cost well in excess of $1 million.

Pirtek designed the facility specifically to test the design, quality of manufacture and lifespan of high-pressure hydraulic hoses. The facility tests Pirtek's own products and those of a variety of outside customers.

The lab is fully accredited to NATA (National Association of Testing Authorities) standards to provide the most accurate data and reporting on the quality of hose products.

Managing director of Pirtek Glenn Duncan says the lab is one of the few hydraulic hose-testing facilities outside of Europe and the USA.

"Our Australian customers identified the need for a local facility that could provide real-world data on the life and quality of a hose - in a controlled environment," Mr Duncan said.

"To provide this data, a hose needs to be tested to destruction, but in a manner that ensures the safety of engineers while still gathering the important data.

"Our facility has state-of-the-art equipment sourced from the best manufacturers worldwide. It can run an hydraulic hose at the correct operating temperature 24 hours a day, seven days a week, until it fails," Mr Duncan said.

"When failure does take place, the sophisticated software automatically shuts the machine down and records vital data such as the failure pressure and temperature, number of cycles performed, and the reason for failure.

"Our in-house engineers are then able to interpret this data to provide the customer with information they can use to improve their design and manufacturing processes - just as we do with our internal quality testing," Mr Duncan said.

Pirtek was able to demonstrate its ability to meet Komatsu Limited of Japan's stringent internal quality specification (KES) using the data collected during testing at the BPI facility.

Each Pirtek manufactured hose will meet the exact specification as a Komatsu factory-manufactured hose.

The data collected during the testing phase has allowed Pirtek to design a hose manufacturing matrix that will be distributed to all Pirtek branches - ensuring quality is controlled nationwide.


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- First machines delivered 1965
- Dependable machines - affordable price
- Driven by customer success

Komatsu Australia continues to strengthen its market share in the Australian mining and construction equipment sectors, posting sales in excess of 850 units last calendar year.

The company is the number two participant in the total equipment industry, with a market share of more than 25 percent.

Komatsu Australia started from humble beginnings in 1965. Demand immediately outstripped supply, with approximately 15,000 machines delivered since then.

"The quality of Komatsu equipment is backed by our commitment to quality customer support and service," said Komatsu Australia's Scott Grant, Group General Manager Customer Support and Business Development.

"This includes service support onsite, and support from the Komatsu Customer Support Centre (KCSC) and spare parts operations.

"We constantly monitor how we can do things better and seek to implement beneficial changes without delay - like the Komatsu-Pirtek partnership."

Globally, Komatsu Limited has a turnover exceeding US$14 billion.

With world demand for mining and construction equipment set to exceed US$130 billion by 2011, Komatsu Limited continues to develop new technologies to meet the challenges of modern operators.

Komatsu continues to lead the equipment industry's technological revolution with products such as the Komtrax satellite monitoring system - where operators can monitor the condition and location of their machine 24 hours a day to maximise its uptime whilst reducing maintenance costs.

Komatsu's Autonomous Haulage System (AHS) currently in operation in Australia is the most advanced technology in the mining industry, allowing operators increased levels of efficiency and safety.

This ground-breaking technology allows mining trucks to be operated remotely without having a driver onboard, reducing operating costs while increasing onsite safety.

"The future prospects for the equipment industry are both challenging and exciting," said Mr Grant.

"Modern machines will need to be cleaner, more efficient and deliver better return on investment for operators," he said.

"In past years Komatsu has invested more than US$500 million annually developing the machines of the future.

"We believe our commitment to quality is unrivalled in the equipment industry," he said.


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- WA largest market

Komatsu Australia delivered more than 700 construction and utility machines and over 150 mining machines during the 2009 calendar year.

Komatsu's 20 per cent share of the construction and utility market and 30 per cent share of the mining market makes the company the number two supplier of machines to Australian customers.

Worldwide sales by all manufacturers in these combined markets totalled US$110 billion last calendar year.

Komatsu Australia forecasts market volumes for the Australian construction market will remain steady this financial year, with the mining sector to grow to around 600 units across all manufactures.

Western Australia remains the largest market for both construction and mining equipment for Komatsu.

WA is also the largest market for Pirtek Australia's current Komatsu-related business.

Komatsu Australia estimates at least 10,000 Komatsu construction machines and more than 2000 Komatsu mining machines remain in service nationwide.

The average estimated lifespan (before turnaround or major refurbishment) of a construction machine is 18,000 hours worked.

The average estimated lifespan (before turnaround or major refurbishment) of a mining machine is considerably more - 10 years at an average of 6000 hours per year.


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