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Parts procurement company to be established in Thailand

February 5, 2013

Kubota Corporation (hereinafter "Kubota") has announced to establish a new company in Thailand in January 2013 for the procurement and supply of parts.
The company will play a vital role in establishing a global procurement system that allows stable procurement and supply of high-quality and low-cost parts from the best sourcing location. This will help improve cost competitiveness of Kubota's production bases around the world.

1. Overview of the new company

Company name Kubota Procurement & Trading (Thailand) Co., Ltd.
Location Amata Nakorn Industrial Estate, Chonburi, Thailand
Business Procurement and supply of parts for Kubota Group's production bases
Established January 2013
Capital 120 million Baht (approx. 300 million Yen at the exchange rate of 2.55Yen to 1Baht)
Investment ratio 100% by Kubota
Number of employee 15 (as of 2017)

2. Background & purpose

  • Facing fierce competition in global business, Kubota strives to further reinforce its business structure by improving cost competitiveness and reducing currency exchange risk. To achieve this, it is essential to establish a system that allows stable procurement and supply of high-quality and low-cost parts from the world's best sourcing location.
  • Kubota will establish a parts procurement company in Thailand where tractors, combine harvestors, engines, etc. are being produced. The global procurement system will provide smooth parts supply from Thai vendors to Kubota production bases in Japan and elsewhere.
  • Kubota's parts procurement operations have been performed individually at each production base. By centralizing the operation, Kubota aims to take advantages of economy in scale in price negotiation, and to increase efficiency of quality improvement activities.

3. Plans for the future

  • In the initial stage, the new company will serve as a global procurement base for the production bases in Japan and the U.S., aiming to improve Kubota's cost competitiveness in the market of these countries. Kubota is planning to establish regional procurement companies in China, the U.S., and other areas in the future.

<Reference: Main production bases in Thailand>

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

Company name SIAM Kubota Corporation Co., Ltd.
Established August 2010 (established by merging The Siam Kubota Industry Co., Ltd. and Siam Kubota Tractor Co., Ltd.)
Location Navanakorn Plant (Head Office): Navanakorn Industrial Estate, Pathumthani, Thailand
Amata Nakorn Plant: Amata Nakorn Industrial Estate, Chonburi, Thailand
Business Manufacturing and sales of tractors, combine harvesters, implements, horizontal type diesel engines, power tillers, as well as sales of construction machinery.
Capital Approx. 2,740 million baht
Investment ratio 60% by Kubota, 40% by the Siam Cement Group

[Profile of KET (Kubota Engine (Thailand) Co., Ltd.)]

Company name Kubota Engine (Thailand) Co., Ltd.
Established February 2011
Location 304 Industrial Park 2, Chachoengsao, Thailand
Business Manufacture of diesel engines for Kubota tractors and combine harvesters, as well as for outside companies.
Capital 1,400 million baht
Investment ratio 100% by Kubota
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