New engine manufacturing base to be established in China
November 26, 2012
Kubota Corporation (hereinafter "Kubota") has announced plans to establish a new base in China in January 2013 for the production of engines. To meet the growing demand for engines in China and other Asian countries, the new company will be engaged in the production of vertical type diesel engines, aiming to further expand Kubota's engine business.
1. Overview of the new company
|Company name||Kubota Engine (WUXI) Co.,Ltd.|
|Established||January 2013 (planned)|
|Location||Wuxi city, Jiangsu, China|
|Scale||Approx. 127,000 m2
(facility area: approx. 18,000 m2)
|Capital||544 million yuan
(6.8 billion yen at the exchange rate of 12.5 yen to 1 yuan)
|Investment ratio||100% by Kubota China Holdings Co.,Ltd.*
*A 100% subsidiary of Kubota and the regional managing company in China.
|Business||Manufacture of diesel engines for Kubota tractors, combine harvesters, construction machinery, as well as for outside companies.|
|Production capacity||97,000 units per year|
|Number of employees||Approx. 300 (planned in 2018)|
|Mass production start||July 2014|
2. Background and purpose of the new company
- The market for agricultural, construction, and industrial machinery is expanding in China and other Asian countries, and the demand for engines is expected to increase significantly. By establishing a local production base in China, Kubota increases its supply capacity and aims to further expand the engine business.
- Increasing the overseas production ratio helps improve the cost competitiveness and reduce its currency exposure, which leads to further reinforcement of the structure of the engine business.
- Kubota aims to establish an optimal global production system by producing its vertical type diesel engine series in Japan (Sakai plant, Sakai Rinkai plant and Tsukuba plant), Thailand (mass production started in October 2012) and China.
3. Plans for the future
- The new plant is scheduled to start the mass production in July 2014 and reach its maximum capacity of 97,000 units by around 2018.