Establishment of new tractor and combine harvester factory in China — Increased production capacity for expansion of the upland farming machinery business
May 9, 2016
Kubota Corporation (Head Office: Naniwa-ku, Osaka, Japan; President and Representative Director: Masatoshi Kimata; hereinafter called “Kubota”) will establish a new factory for the manufacturing of tractors and wheel-type combine harvesters at Kubota’s Chinese manufacturing subsidiary “Kubota Agricultural Machinery (SUZHOU) Co., Ltd.” (hereinafter called “KAMS”). The aim of this increase to production capacity is to expand Kubota's upland farming business.
- Kubota established KAMS in 1998 and it has manufactured and sold agricultural machinery such as combine harvesters and rice transplanters.
- We established manufacturing lines for tractors in 2009 and for wheel-type combine harvesters in 2013 within rented factory space and continued to supply products whilst promoting the expansion of the business.
- Kubota decided to establish a new factory (the second factory) within the grounds of the current KAMS factory in order to provide manufacturing support for the future expansion of the upland farming business. The procedures for the factory construction will be started after the environment related applications to the Chinese authorities and the environmental inspections.
- Together with the increase in production capacity through this investment, we will also promote cost reductions and productivity improvements to realize product manufacturing that is even more competitive and to contribute to the further mechanization of Chinese agriculture.
2. Overview of the New Factory
|Location||Suzhou City, Jiangsu Province, People's Republic of China|
|Scale||Building area 29,000 m2|
|Total investment||Total 297 million Chinese Yuan (Approx. 5.64 billion Japanese Yen with exchange rate of 19.01 Yen to 1 Yuan)|
|Items to be manufactured||Tractors, wheel-type combine harvesters|
|Production capacity||Tractors: 10,000 per year,
Wheel-type combine harvesters: 10,000 per year
|Start of operations||November 2017|
【Overview of KAMS】
|Company name||Kubota Agricultural Machinery (SUZHOU) Co., Ltd.|
|Location||Suzhou city, Jiangsu, China|
|Scale||Site area: 127,000 m2/Facility area: 29,000 m2|
|Capital||21 million US dollars|
|Investment ratio||100% by Kubota|
|Business||Manufacturing and sales of combine harvesters, rice transplanters, and tractors|
|Production Capacity||Combine harvesters: 36,500 per year
Transplanters:40,000 per year
Tractors: 5,000 per year
|Number of employees||Approximately 1,900 (as of 2016 April)|