Established a specific subsidiary company to operate a hydroponics business
With the goal of activating agriculture in Japan by supporting self-reliance of disabled people, getting along with local communities, and using abandoned farmland, we established the hydroponics company Kubota Sun-Vege Farm. The company was started with 12 employees as the second specific subsidiary company of KUBOTA. It supplies produce to the KUBOTA Group employee cafeterias and sells to employees, in addition to shipping lettuce, potherb mustard, Japanese mustard spinach, and other products to local supermarkets and retail stores.
Kanan Farm, which the company operates, uses abandoned crop fields, while adopting photovoltaic power systems, cooling systems using evaporated water, and other means to reduce environmental loads.
Certification as an “Eco First Corporation” by the Japanese Ministry of the Environment
“Eco First System” certification awarded by the Japanese Minister of the Environment recognizes corporate entities for their innovative spirit as industry leaders in taking environmental conservation measures. KUBOTA was certified as an “Eco First Company” this year for investing in activities to prevent global warming, create a sustainable society, appropriately manage chemicals, and preserve biodiversity as a corporate group that contributes to society in the fields of food, water, and the environment.
Launched combine harvester production in Thailand
To further promote the expansion of production bases centering on Asia, we launched production of conventional-type combine harvesters at Siam Kubota Tractor Co., Ltd. (SKT) (currently SIAM KUBOTA Corporation Co., Ltd.).
In addition to addressing the needs of the domestic market in Thailand, where mechanization of agriculture is rapidly advancing due to increases in farmers’ incomes and shortages of labor, we are expanding the supply system to increase sales to neighboring countries such as India and Vietnam.
Established a pump manufacture and sales company in China
KUBOTA SANLIAN PUMP(ANHUI)Co., Ltd. was established in China, where water shortages and water pollution have become serious problems in parallel with rapid population growth concentrated on cities. The company manufactures and distributes pumps in a joint venture with a local manufacturer using our technologies accumulated constructing social infrastructure in Japan.
KUBOTA also expands business in Southeast Asia where infrastructure networks are expanding from large cities to provincial cities. It provides submersible pump manufacturing technology to the new company, which manufactures and distributes pumps for use in sewerage and rainwater drainage systems in China.
First in the world to meet CARB Tier 4 Interim Emission regulations of the U.S.
With rising awareness to conserve the global environment, we addressed the Tier 4 off-road diesel vehicle emissions regulation of the California Air Resources Board (CARB) with an output range of between 56 to 130 kW . We obtained certification for meeting regulations for the first time in the areas of industrial diesel engines with capacities of up to 4 liters.
We adopted the Common Rail System to control fuel injection with a computer and the exhaust gas recirculation (EGR) system to suppress emissions of NOxs by reintroducing part of the exhaust gas in response to strict regulations for reducing PM (airborne particles such as soot) contained in exhaust gases to 1/10 or less than the current level. While also achieving a compact design, we improved output and reduced noise.
Established two water treatment companies and a regional management company in China
In response to population increases and economic development in China, and following the establishment of a pump manufacturing and distribution company in 2010, we set up joint-venture and wholly-owned water treatment engineering companies. The joint-venture, KUBOTA GUOZHEN ENVIRONMENTAL ENGINEERING(ANHUI) CO., LTD., produces membrane systems, a core product that uses our advanced water treatment technology, and engages in the water treatment business by applying our engineering expertise. Kubota Environmental Engineering (Shanghai) Co., Ltd. recycles industrial effluent and engages in environmental activities in agricultural areas.
In addition, Kubota China Holdings Co., Ltd., our first regional headquaters, manages six existing companies in China and carries out comprehensive marketing activities. It was established to achieve strategic business expansion in the rapidly growing Chinese market.
Launched Eco Products Certification System
As a company that positions conserving the global environment as a goal with the highest priority, we launched the Eco-Products Certification System to certify our own products that satisfy internal requirements covering three criteria: saving energy (CO2 reduction), saving resources and recycling, and reducing substances that impose an environmental load.
A score is calculated using the three criteria for each product distributed by the KUBOTA Group in Japan. Products with scores higher than a certain level are certified into two tiers depending on their environmentally friendly performance. An original logo and information on our environmental activities are indicated on certified products to promote the expansion of eco products.
Completed a plant for cast-steel products in Saudi Arabia
Kubota Saudi Arabia Company, LLC was established to manufacture and distribute heat-resistant cast-steel reaction tubes for ethane/naphtha decomposition in petrochemical plants.
In the Middle East, demand for reaction tubes is expected to grow due to large reserves of crude oil, and there is strong demand for competitive costs, faster delivery, and improved services. In addition, Saudi Arabia has a leading ethylene company with a global business, and is geographically close to Europe and North Africa.
Therefore, we established a local production system to be a foothold for global expansion, in addition to meeting demand in Saudi Arabia.
Production plant for small construction machinery completed in China
In China, where rapid economic growth continues and rising demand for construction machinery is forecasted, we established a company to distribute small construction machinery in 2003, and began partial assembly of locally-procured parts in 2009. To reinforce cost competitiveness, avoid risks of foreign exchange fluctuations, and further reinforce the supply capacity to meet increasing demand, we established Kubota Construction Machinery (Wuxi) Co., Ltd. as a local production base.
This creates a three-pole system with small construction machinery production bases in Japan, Germany, and China, and addresses dramatic advances in our global system by responding instantly to demand fluctuations.
Established a company specialized in the import, milling, and sales of Japanese rice in Hong Kong
To support expansion of overseas demand, which is a big issue for agriculture in Japan, we established Kubota Rice Industry (H.K.) Co., Ltd. to import, mill, and distribute Japanese rice in Hong Kong.
The company stores unpolished rice in a refrigerated warehouse, and cleans it at its own rice-cleaning facilities for shipment fresh. By supplying high-quality Japanese rice in the best possible condition, we are contributing to the expansion of overseas demand.
Acquired a tractor implement manufacturing subsidiary in Norway
Production for the global dry field farming market will inevitably increase in the future, and it is said to be seven times as large as the rice cultivation market. To actively enter this new market with its great potential in the future, we acquired Kverneland AS, a Norwegian manufacturer of implements for tractors, and made it a subsidiary.
By combining the distribution network of this company, which has a substantial product lineup, excellent technologies, and high brand recognition in Europe, with our expertise accumulated in Japan, we are improving the lineup of large machinery and dry field machinery, and developing new markets.
Set up an engine production base in China to meet increasing demand in Asia
The market for agricultural machinery, construction machinery, and industrial machinery is forecasted to expand in Asia, including China, and demand for engines is expected to increase dramatically. As a result, we established Kubota Engine (WUXI) Co., Ltd. to produce vertical type diesel engines in China.
Besides reinforcing supply capacity for growing markets, we intend to bolster our cost competitiveness and improve our overseas production ratio, while reducing foreign exchange fluctuation risks and further expanding and developing our engine business.
Established a global corporate principle and logo type
In parallel with the globalization of our business, we established the Kubota Global Identity for the KUBOTA Group employees around the world. The aim is to share a basic philosophy and concepts, and to promote business activities under common values that transcend national boundaries, generations, and class divisions.
It comprises “spirits (our spirits and attitudes),” “brand statement (our promise),” and “mission (our mission).” The logo type was redesigned to actively communicate our brand statement: “For Earth, For Life.” As our mission, we announced a commitment to contribute to solving problems in the fields of food, water, and the environment, which is required for the survival of humankind.
Established KUBOTA KASUI to reinforce our water treatment business
Ever since it was established, KUBOTA has been involved in businesses related to water, and has had the mission of offered solutions to problems related to water. To further accelerate these activities, we acquired Fujikasui Engineering Co., Ltd., a water treatment engineering company, made it the wholly-owned subsidiary KUBOTA KASUI Corporation, and launched operations.
In Japan, the technology and expertise of the company in the private industrial effluent field is combined with expertise we have accumulated in public water and sewerage services. In Asian countries, the advanced water treatment products and technology of KUBOTA and the engineering bases of this company have been consolidated. As a result, we have further expanded activities in the domestic and international water and environment business.
Established a company to procure and supply parts in Thailand
We established Kubota Procurement & Trading (Thailand) Co., Ltd. in Thailand where we produce tractors, combine harvesters, and engines. It was a response to increased global business competition, which made it necessary to set up a system to stably procure high-quality and reasonably priced parts from various parts of the world.
This company is responsible for forming a global procurement system to supply parts from suppliers in Thailand to production bases not only in Thailand but also in Japan and other parts of the world. It leads to improved competitiveness in markets of various countries using economies of scale in price negotiations and quality improvements to unify parts procurement, which had been carried out by individual bases.
Established a new production facility for compact tractors in the U.S.
To reinforce the business system in North America, which is the largest market for our tractor business and where competition with companies from emerging countries such as South Korea, China, and India is expected to intensify in the future, we set up a new base to produce 40-horsepower class tractors.
Since we established our first overseas tractor distribution company in the U.S. in 1972, we have cultivated the North American market by setting up two plants to produce sub-compact tractors and implements for tractors. At this plant for compact tractors, we reinforce our cost competitiveness and address further business expansion with globally optimized procurement including parts from Thailand.
Established a company specialized in the import, milling, and sales of Japanese rice in Singapore
In Japan, the environment surrounding agriculture is becoming tougher as rice consumption decreases due to diversification of diets and a decreasing population. To activate agriculture in Japan by supporting rice exports, KUBOTA established Kubota Rice Industry (Singapore) PTE Ltd., a company that imports, cleans, and distributes rice in Singapore as the next base for exports of Japanese rice following one in Hong Kong.
Importing unpolished rice from Japan and locally cleaning in the newly constructed milling plant in Singapore, the company supplies delicious rice to consumers in Singapore. We support the expansion of exports by increasing the number of fans of Japanese rice.
New companies established for distributing agricultural machinery in Cambodia and Laos
SIAM KUBOTA Corporation Co., Ltd. (SKC), a joint-venture subsidiary of KUBOTA and a Thai corporation established KUBOTA (Cambodia) Co., Ltd. in Cambodia and KUBOTA LAOS SOLE Co., Ltd. in Laos with 100% investments in each.
Both Cambodia and Laos are agricultural countries, whose major products are rice and sugarcane, where mechanization of agriculture is rapidly advancing due to labor shortages in rural agricultural areas. Leveraging our experience distributing tractors, combine harvesters, and small diesel engines to dealers in both countries, we expand dealer networks by establishing new companies and reinforcing after-sales services, in order to promote business expansion.
Established production center for upland farming tractors in France
As a step towards full entry into the dry field grain market, we established Kubota Farm Machinery Europe S.A.S. in the Dunkerque region of France.
France is at the center of demand in Europe, and the Dunkerque region is an ideal location for exporting to North America because it is close to a port. Using this location as a base for expanding our upland farming machinery business in Europe and America, we aim to become a globally active general agricultural machinery manufacturer in both the wet-rice farming market and the dry field grain market.
Developed an agriculture support system using ICT and agricultural machinery applying the system
In the future, farmers in Japan will need to produce safe and delicious crops very efficiently by promoting economies of scale, improved cost competitiveness, and high value-added crops. To facilitate these changes as soon as possible, KUBOTA developed Kubota Smart Agri System (KSAS), a farming/service support system using information and communication technology (ICT). At the same time, we released a tractor capable of communicating work records and machine operation data for individual areas of farmed land, a combine harvester with functions to measure the taste and yield of unhulled rice, and a rice transplanter capable of electrically adjusting the amount of fertilizer scattered as agricultural machinery applying KSAS.
Using information collected in KSAS through these machines in farming plans, we contribute to improving the quality of rice and yields.
