Construction machinery maker Komatsu Ltd plans to increase its domestic production capacity for key mining equipment parts such as engines and axles, by about 15 percent, the Nikkei said.

The company plans to invest about 15 billion yen ($194.96 million) over three years to install additional manufacturing equipment at three plants in Tochigi, Osaka and Ishikawa prefectures, the daily said.

Demand for mining equipment has increased as projects to tap coal and iron ore resources have been launched overseas in response to rising resource prices, the Nikkei said.

Aggressive investment in domestic plants to boost productivity will allow Komatsu to compete favorably with foreign rivals despite the strong yen, the business daily said.