Production of tractors starting in China
December 19, 2012
Kubota Corporation (hereinafter "Kubota") will begin the mass production of tractors at its local subsidiary in China, Kubota Agricultural Machinery (SUZHOU) Co., Ltd. (hereinafter "KAMS"), in January 2013. By establishing a local manufacturing operation, Kubota will improve its cost competitiveness, strengthen our ability to react quicker to market demands and ultimately increase tractor sales in the Chinese market.
Overview of the new plant
Location Suzhou city, Jiangsu, China Production area 11,000 m2 (KAMS's plant on lease) Investment Approx. 300 million yen Production items Tractors for the Chinese market Production capacity Approx. 10,000 units per year (in 2015) Mass production start January 2013 (planned) Number of employees Approx. 200 employees in the production of tractors (in 2015)
Background and purpose
- Kubota established KAMS in 1998, when the demand for mechanization of agriculture grew in China. Since then, KAMS has been actively engaged in the manufacturing and sales of combine harvesters and rice transplanters.
- Kubota launched its tractor brands and began distributing products in the Chinese market in 2009. Currently, those products are being exported from Japan to be sold in China.
This operational initiative is part of Kubota's overall global strategic plan to reduce operating cost, meet local market demands and improve sales worldwide.
- Kubota also intends to reduce currency exposure by establishing the local production operation. Additionally, the company will reinforce its cost competitiveness by increasing the rate of local procurement: Engines, the main component of the machinery, will be procured from Kubota Engine (WUXI) Co., Ltd., which will begin mass production in 2014.
Plans for the future
To meet the growing demand for high horsepower tractors in China, KAMS is starting the production with the models in the 70 horsepower class. Production of tractors of 100 horsepower or greater are planned to start in 2016.
[ Overview of KAMS ]
Company name Kubota Agricultural Machinery (SUZHOU) Co., Ltd. Established April 1998 Location Suzhou city, Jiangsu, China Representative Koichi Yamamoto Scale Site area: 127,000 m2/Facility area: 33,000 m2 Capital 21 million US dollars Investment ratio 100% by Kubota Business Manufacturing and sales of combine harvesters, rice transplanters, and other machinery.