Komatsu marked the grand opening of its new Peoria mining and surface haulage headquarters Wednesday with a ceremonial tree planting, a fitting symbol for a company whose name translates from Japanese as "little pine tree." Executives said the new facility signals their commitment to the future of manufacturing in the region and to the planet itself.
The $28 million, 75,000 square foot, three-story building on NE Adams Street — equipped with a solar array generating 120,000 kilowatts of energy and a rainwater collection system — won't add new jobs, but Peoria City Manager Patrick Urich said it sends a clear message.
"The number of people that are going to be coming into work in this building every day — it shows the commitment that the company has to Peoria, and that's really important." He added, "It's important that we continue to try and create and set the table for additional manufacturing here in the region."
In a region where Komatsu's largest local competitor, Caterpillar, has not broken ground on a major construction project in years, having abandoned its plans to build a new downtown headquarters, the Komatsu facility represents a $28 million bet on Peoria's manufacturing future.
Dan Funcannon, Komatsu's senior vice president of surface haulage, echoed that sentiment.
"This investment really reassures the community and the employees that we're here for the long run," he said. "This project in itself did not lead to more staff, but our business is strong."
Total project costs, including demolition of the old building and parking additions, are expected to exceed $30 million, which was paid for entirely by Komatsu.
Mark Denzler, president and CEO of the Illinois Manufacturers Association, called the investment a ripple effect across the regional economy.
"Not only the 1,000 people that work at Komatsu, but the hundreds of suppliers that Komatsu uses to make these huge mining trucks — it has a ripple effect," he said. "The folks that work here, they live here, they pay great wages, so they can go on vacations and eat at restaurants."
Nick Hart, president of P.J. Hoerr — the Peoria-based contractor that built the facility — said his crew completed the project in 15 months, ahead of occupancy and under budget.
"When you get to build a building like this in our community, it's something we're proud about," Hart said. "We drive down the road and we tell our kids — and hopefully our grandkids one day — we helped build this."
Peter Salditt, Komatsu's global mining CEO, closed out the formal remarks by framing Peoria's role in the company's worldwide operations.
"The mining trucks built here are among the largest and most capable in our portfolio, representing decades of experience and manufacturing excellence," he said.
The company's community footprint extends beyond its campus. Komatsu has partnered with Habitat for Humanity on neighborhood revitalization projects, volunteering time and resources to rebuild homes in surrounding areas, a parallel investment in the city it said it intends to stay and grow in.
Urich offered his measure of what the investment means for Peoria.
"As you drive up and down Adams Street every day and you see the commitment that Komatsu is making to this facility — with one of the largest mining trucks standing out in front of the entrance ... it's visible, and it's very important for the growth of this region."
