REPORT 01 Expanding into New Markets―Mining Equipment Business: From Canada to the World

Mining development is thriving, driven by intensifying global competition for untapped natural resources. One of the factors that play a key role in improving the productivity of mining development is mining equipment and their after-sales services, provided by Sumitomo Corporation. Sumitomo Corporation is striving to develop in the global market through its successful Canadian subsidiary as well as by further enhancing and deepening its sales agency function, which has been Sumitomo Corporation’s traditional forte and core business. (Posted on February 14, 2012)

24/7/365 ongoing efforts―Solid track record of continuous operations supports the core business

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Trust built up in Canada led to winning a major order in Mongolia

“When I heard the news of the success in winning the major order in Mongolia, rather than simply celebrate, I braced myself for the huge upcoming task,” said Mr. Yuki Oka, who is in charge of implementing the global strategy of Sumitomo Corporation’s mining equipment business. This was the moment when he literally trembled with excitement.

In February 2011, Sumitomo Corporation announced that the company had received a major order for Komatsu’s mining equipment for use in Oyu Tolgoi, one of the world’s largest copper-gold mines, through its Mongolian subsidiary, Transwest Mongolia (TM). With this order, TM assumed the role of serving as the dealer of Komatsu, a Japanese mining and construction equipment manufacturer, by selling and providing after-sales services for ultra-large dump trucks, bulldozers, and other mining equipment to the mining company that owns the Oyu Tolgoi mine.

This success of TM in winning the order was also a great surprise to Sumitomo Corporation because TM was a new company, having been established only one and a half years ago in August 2009. Sumitomo Corporation had no experience in the mining equipment business in Mongolia up until then.

Despite these disadvantages, TM won the order. There were 40 equipment sold in total. The contract value amounted to about 10.9 billion yen. In addition, steady revenue can be expected every year through after-sales services and other operations. How could TM, with no track record in the business, achieve this huge success?


The 930E, the world’s largest class electric drive dump truck made by Komatsu.
One of the equipment sold in Mongolia

Formation of a global strategy team


Yuki Oka, a Sumitomo Corporation employee currently on loan to SMS-E

One of the main players who contributed to this success is SMS Equipment (SMS-E), a subsidiary of Sumitomo Corporation, which had been engaged in the mining and construction equipment business in Canada for many years. SMS-E is the parent company of TM, and has been building strong bonds of trust with leading mining companies as well as Komatsu.

The successful order in Mongolia was in fact a part of Sumitomo Corporation’s global strategy aimed at expanding the mining equipment business around the world based on the credibility and sound track record of SMS-E. The unit promoting this strategy is the Global Mining Office (GMO), set up within the Construction & Mining Systems Division of Sumitomo Corporation. The current members of the GMO are Mr. Oka (mentioned above), President and CEO of SMS-E, General Manager of the Construction & Mining Systems Division, and other mining equipment business personnel. The success in Mongolia was brought about by the steady efforts of this small team, who are currently planning the next global strategic step.

But how has SMS-E developed its credibility?


The Oyu Tolgoi mine located in the southern Gobi Desert

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REPORT 01 Expanding into New Markets―Mining Equipment Business: From Canada to the World

  • 24/7/365 ongoing efforts―Solid track record of continuous operations supports the core business
  • Sales are not the endpoint of the business―The goal is to deepen the business model
  • Bonds of trust and the human network―Key elements to opening the way for Sumitomo Corporation to enter a new market in Mongolia
  • Opening new frontiers―Settling in the land of the Yeti in the huge Russian market

REPORT 02 Solutions through Innovation ―Power Plant Lease Project in Indonesia

REPORT 03 Introducing Japanese Agricultural Business Model Across the Globe ―Agribusiness to Spread Agricultural Cooperative Style Service from Romania

REPORT 04 Supporting Lifestyles ―Retail Business Incorporating Trends in Consumption Behavior

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