Kubota Seiki Corporation, a subsidiary of Kubota Corporation that manufactures parts for agricultural machinery, established a production base in Thailand (Kubota Precision Machinery (Thailand) (hereinafter "KPMT")) in April 2011. This base manufactures hydraulic equipment for agricultural machinery.

In addition to Kubota Engine (Thailand) (hereinafter "KET"), an engine manufacturing company founded in February 2011, the new company (KPMT) will supply locally produced key components to a local production base for agricultural machinery (SIAM Kubota Corporation, hereinafter "SKC") and thus expand the local procurement of agricultural machinery parts.

In this way, we have established an integrated production system from manufacture of key agricultural machinery components to assembly of agricultural machinery, positioning Thailand as a strategic base for manufacturing in Asia, as we aim for further global expansion.

• Press release on establishment of Kubota Engine (Thailand):
  http://www.kubota.co.jp/new/2011/engine.html

1. Profile of new company

Company name	Kubota Precision Machinery (Thailand) Co., Ltd.
Established	April 1, 2011
Location	Amata Nakorn Industrial Estate in Thailand (near the SKC Amata Nakorn Plant)
Production area	About 1,100 m2 (rented plant)
Capital	About 120 million yen (45 million baht at the exchange rate of 2.7 yen to 1 baht)
Investment form	100% financed by Kubota Seiki Corporation * Kubota Seiki Corporation is a wholly owned subsidiary of Kubota
Total investment amount	About 120 million yen (44 million baht at the exchange rate of 2.7 yen to 1 baht)
Business	Production of hydraulic cylinders for tractors
Production capacity	50,000 units per year
Number of employees	About 60 (2012)
Start of production	Mass production planned to start in July 2011

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2. Background to and aim of establishing new company

• The aim was to help build the Kubota brand by establishing a base for the local production of hydraulic equipment, a key component of agricultural machinery, and supplying high-quality hydraulic equipment at a highly competitive cost to a local production base for agricultural machinery in Thailand (SKC).
• We have established an integrated production system from the production of key components of agricultural machinery such as engines and hydraulic equipment to their assembly. In this way, we aim to strengthen cost competitiveness, avoid the risk of exchange rate fluctuations, and further expand and strengthen the agricultural machinery business.
• In the future, as well as expanding the lineup of parts produced, we will use it as a global supply base that has external sales, and expand the business of hydraulic equipment.

3. Future outlook

Mass production will begin in July 2011, and the plan is to produce about 50,000 units in 2015.

Map of Bases in Thailand

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Reference

Profile of Kubota Seiki Corporation

Established	May 1947
Location	Mihara-ku, Sakai, Osaka
Business	Design, manufacture and sale of parts for agricultural machinery (hydraulic equipment, other precision machine parts)
Capital	480 million yen
Investment ratio	100% by Kubota
Number of employees	About 300

Profile of SKC (SIAM Kubota Corporation Co., Ltd.)

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  SKC Amata Nakorn Plant

Established	August 2010 (in a merger between The Siam Kubota Industry Co., Ltd. and Siam Kubota Tractor Co., Ltd.)
Location of Head Office	Navanakorn Industrial Estate, Tambon Khlongnueng, Amphur Khlongluang, Pathumthani 12120, THAILAND
Business	Manufacture and sale of tractors, combines, implements, horizontal diesel engines and cultivators to be shipped within Thailand or its neighboring countries
Capital	About 2.74 billion baht
Investment ratio	Kubota: 60% , Siam Cement Group: 40%
Number of employees	About 1,800

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