Komatsu UK is the UK arm of the Japanese-headquartered Komatsu, which manufactures medium-sized and large crawler excavators.
The subsidiary was established in 1985 and creates excavators for, and sells them exclusively, to KESIA.
For the year ended 31 March 2024 turnover dropped from £353.1m to £170.1m, while pre-tax profits dipped to £4.6m, down from £9m.
In a report, Komatsu UK said the decrease in turnover reflected "a reversal of the positive demand and share trends seen in the prior year", adding: "The post-Covid spike in demand abated and market share declined as competitor availability improved."
Managing director Paul Blanchard told Insider that trading conditions "remain challenging as the UK and European economy continues to fluctuate".
He added: "The demand across the UK and Europe significantly declined resulting in a reduction last year in the turnover and profit at KUK. Whilst conditions remain challenging the company remains in a robust financial position.
"Having navigated our way through the unique impacts of Brexit, the pandemic, war in Ukraine and changes of government, KUK, like all businesses, looks forward to a period of economic stability.
"In the meantime, we will continue to invest in workforce skills, new technology and innovation at Birtley. These proactive measures and the work of our dedicated employees will help ensure we remain at the forefront of European excavator manufacturing."
