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New Tractor and Combine Harvester Plant in China Begins Operation
— Increase in production capacity toward the further expansion of agricultural machinery business in China

April 12, 2018

Kubota Corporation (Headquarters: Naniwa-ku, Osaka, Japan; President and Representative Director: Masatoshi Kimata) began full-scale operations in November 2017 at a new plant for tractors and wheel-type combine harvesters (hereinafter referred to as the "No. 2 Plant") in Kubota Agricultural Machinery (Suzhou) Co., Ltd. (hereinafter referred to as "KAMS"), its Chinese manufacturing subsidiary.

On April 10, a ceremony was held to commemorate the opening of the new plant on the grounds of KAMS. The guests included agricultural machinery administrative officials, executives of the Suzhou Industrial Park Administrative Committee, executives of various related associations, and Dr. Kazuyuki Katayama, the Consul-General of Japan in Shanghai. In his address at the ceremony, Kubota President and Representative Director Masatoshi Kimata stated, "The KAMS No. 2 Plant will be a production site for agricultural machinery directed to the upland farming market. In addition, as a plant equipped with the world's highest levels of exhaust and drainage facilities, it is aimed at not only resolution of food supply problems but also at the preservation of the environment. Together with all of you, I want to continue taking on challenges toward realization of Global Major Brand Kubota. That is to say Kubota becomes a brand that can make the greatest social contribution through activities at this No. 2 Plant and our other locations." In the future as well, Kubota will take action closely attuned to the Chinese market and assist China's economic and social advancement.

Description

  1. Background of establishment of the No. 2 Plant
    • Kubota established KAMS in 1998 and launched production and sales of agricultural machinery, including combine harvesters and rice transplanters.
    • Within a rental plant, KAMS built a production line for tractors in 2009 and wheel-type combine harvesters in 2013.And it has expanded its business while supplying these products.
    • In 2016, it was decided to construct the No. 2 Plant on the plant grounds of the KAMS headquarters, in order to support the future expansion of upland farming business from the production end. The construction of the plant began after submission of an environmental assessment report and acquisition of approval for the project from the authorities.
    • With the full-scale operation of the No. 2 Plant, Kubota is determined to promote cost reduction and productivity improvement in addition to production capacity increase. It will pursue product manufacturing that is even more competitive and impresses customers, thereby contributing to the further mechanization of Chinese agriculture.
  2. Corporate Outline of the No. 2 Plant
    Location Suzhou City, Jiangsu Province, People's Republic of China
    Scale Building area of 29,000 m²
    Total investment 297 million CNY (approx. 5.64 billion JPY at an exchange rate of 19.01 JPY = 1 CNY)
    Production items Tractors and wheel-type combine harvesters
    Production capacity 10,000 tractors per year and 10,000 wheel-type combine harvesters per year
    Start of operations November 2017

    Outline of Kubota Agricultural Machinery (Suzhou) Co., Ltd. (KAMS)
    Company name Kubota Agricultural Machinery (Suzhou) Co., Ltd. (KAMS)
    Establishment April 1998
    Location Suzhou City, Jiangsu Province, People's Republic of China
    Representative Ryuichi Minami
    Scale Site area of 127,000 m², building area of 58,000 m² (No. 1 Plant: 29,000 m²; No. 2 Plant: 29,000 m²)
    Capital 21 million USD
    Investment ratio 100% invested by Kubota Corporation
    Production items (capability) Manufacture and sale of combine harvesters, rice transplanters, tractors, and other agriculture-related machinery
    Production capacity 40,000 combine harvesters per year, 42,500 rice transplanters per year, 10,000 tractors per year
    Number of employees Approx. 1,700 regular employees (as of March 2018)

    * Press release from the announcement of the construction of the new plant:
      http://www.kubota.co.jp/new/2016/16-11j.html

    Photo of attendees at the opening ceremony

    (From left), name and position
    Ryuichi Minami, Executive Officer, Kubota Corporation
    Liu Xian, Chairperson, China Agricultural Mechanization Association
    Chen Zhi, President, China Association of Agricultural Machinery Manufacturers
    Kazuyuki Katayama, Consul-General of Japan in Shanghai
    Xu Huimin, Secretary, Suzhou Industrial Park Administrative Committee
    Masatoshi Kimata, Representative Director and President, Kubota Corporation
    Shen Jianhui, Vice-Chairperson, Jiangsu Provincial Commission of Agriculture
    Yuichi Kitao, Director and Senior Managing Executive Officer, Kubota Corporation
    Sun Yanyan, Director, United Front Work Department, Suzhou Industrial Park Administrative Committee
    Zhu Jiang, Vice-Chairperson, Suzhou Industrial Park Administrative Committee
    Osamu Matsuo, President, Kubota Agricultural Machinery (Suzhou) Co., Ltd.

Introduction of KAMS Product Lineup

Tractors (M954K)
Wheel-type combine harvesters for corn (PRO1408Y-4)

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