Tokyo, Feb. 21 (Jiji Press) — Major Japanese machinery maker Komatsu Ltd. <6301> has stopped developing vehicles for the Self-Defense Forces, company and other sources said Thursday.
Vehicle development for the SDF does not pay off enough to offset the cost, Komatsu officials said.
After being asked by the ministry to work on upgrading light armored vehicles, Komatsu replied in autumn last year that it would not newly develop SDF vehicles as long as the current situation continues, according to the sources.
Komatsu plans to continue maintenance and parts supply for SDF vehicles for a certain period.
The company mainly supplies the ministry with ammunition, LAVs and nuclear, biological and chemical reconnaissance vehicles.
In fiscal 2017, which ended in March last year, the total amount of contracts worth 1.5 million yen or more per case Komatsu concluded with the ministry stood at some 28 billion yen, making it the seventh-largest supplier.
LAVs developed and manufactured by Komatsu are priced at over 30 million yen per unit. The company has supplied some 2,000 LAVs to the ministry since they were first deployed to the Ground Self-Defense Force in fiscal 2002. They have been used by troops dispatched to Iraq.