Remanufacturing Business Acquisition by Komatsu

Remanufacturing Business Acquisition by Komatsu

Tokyo / Lexington, Kentucky | February 2026 — Komatsu Ltd. has announced a remanufacturing business acquisition in the United States, with its wholly owned subsidiary Komatsu America Corp. agreeing to acquire the remanufacturing business assets of SRC of Lexington, Inc., a long-time supplier of remanufactured components for construction and mining equipment.

The transaction, subject to customary closing conditions, is expected to close by the end of February 2026. Komatsu said the acquisition is not expected to have a material impact on its consolidated financial results.

Strengthening Komatsu’s circular business model

Remanufacturing, or “Reman,” is a core pillar of Komatsu’s circular economy strategy. Through its Reman operations, the company recovers used components from construction and mining equipment, restores them to like-new condition, and returns them to the market with the same quality standards as new parts — while reducing costs, lead times, and environmental impact.

By leveraging its expertise in critical components such as engines and transmissions, Komatsu’s Reman products help customers lower total lifecycle costs and improve resource efficiency through reuse.

Growing demand drives expansion

Demand for remanufactured components has increased steadily, driven by the growth of the installed base of quarry and mining equipment in North America since 2010. Komatsu said transaction volumes in its Reman business increased nearly fourfold between fiscal years 2010 and 2024.

“Reman business is a strategic pillar of Komatsu’s global growth and sustainability initiatives,” said Naoyuki Sakurai, President of Komatsu’s Parts & Reman Promotion Division. “By bringing SRC of Lexington’s operations in-house, we are strengthening our ability to respond quickly to customer needs, enhance supply stability, and continue expanding our circular business model globally.”

Expanding North American capacity

SRC of Lexington, based in Kentucky, has over three decades of experience supplying remanufactured components to the construction and mining sectors. The acquisition will establish a stronger regional Reman hub in North America, one of the world’s largest equipment markets.

“This agreement reflects a shared commitment to remanufacturing excellence and long-term customer support,” said Tim Stack, President of SRC Holdings Corp. “Becoming part of Komatsu allows the Lexington team to build on its legacy while gaining the investment and stability needed for long-term growth.”

A global Reman network

Komatsu launched its first Reman facility in Chile in 2005, followed by a second in Indonesia in 2007. As of 2025, the company operates 45 Reman locations across 16 countries.

The addition of the Lexington, Kentucky facility further strengthens Komatsu’s North American Reman network and expands global supply capacity to meet rising customer demand.

Industry impact

As construction and mining companies increasingly prioritise cost efficiency and sustainability, Komatsu’s latest remanufacturing business acquisition highlights the growing strategic importance of circular economy solutions in heavy equipment markets.

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