Increase in Production Capabilities for Tractor Implements at North American Subsidiary Responding to Rapidly Increasing Demand in North America via the New and Existing Plants
Jun 1, 2022
Kubota Industrial Equipment Corporation (KIE), a United States subsidiary of the Kubota Corporation (Head Office: Naniwa-ku, Osaka, Japan; President and Representative Director: Yuichi Kitao; hereinafter “Kubota”), will build a new plant to manufacture work equipment to install on tractors (hereinafter “implements”) to address the rapidly increasing demand in North America.
1. Background and Objectives
- New tractors sold in North America are often equipped with front loaders for carrying materials like dirt and hay, backhoes for excavation, and other implements. More than 90% of these tractors come equipped with a front loader.
- The demand for tractors is rapidly increasing in North America, driven by factors that include a more rapid suburban migration due to the COVID-19 pandemic. This is also heightening the demand for implements. Even though KIE currently does manufacture implements, the demand in North America is exceeding its production capabilities. Anticipating this demand will remain stable in the future, KIE will build a new plant.
- The new and existing plants will respond to the tremendous North American demand by increasing the annual implement production capacity from 100,000 units to 210,000 units.
2. About the new plant
|Start of operations||August 2024|
|Location||Gateway Industrial Park in Hall County, Georgia, U.S.A.|
|Investment||Approx. 18.0 billion yen|
|Total floor area||Approx. 60,200 m2|
|Company name||Kubota Industrial Equipment Corporation (KIE)|
|Location||Jackson, Georgia, U.S.A.|
|Capital||Approx. 2.2 billion yen|
|Number of employees||Approx. 1,200 (as of April 2022)|
|Buisiness||Implements for tractors (front loaders, backhoes, bucket) , Mid-Sized Tractors, Construction Equipment|