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Production Base for Hydraulic Equipment for Agricultural Machinery Established in Thailand
Established a local and integrated production system from the production of parts to the assembly of agricultural machinery

June 27, 2011

Kubota Seiki Corporation, a subsidiary of Kubota Corporation that manufactures parts for agricultural machinery, established a production base in Thailand (Kubota Precision Machinery (Thailand) (hereinafter "KPMT")) in April 2011. This base manufactures hydraulic equipment for agricultural machinery.

In addition to Kubota Engine (Thailand) (hereinafter "KET"), an engine manufacturing company founded in February 2011, the new company (KPMT) will supply locally produced key components to a local production base for agricultural machinery (SIAM Kubota Corporation, hereinafter "SKC") and thus expand the local procurement of agricultural machinery parts.

In this way, we have established an integrated production system from manufacture of key agricultural machinery components to assembly of agricultural machinery, positioning Thailand as a strategic base for manufacturing in Asia, as we aim for further global expansion.

  1. Profile of new company

    Company name Kubota Precision Machinery (Thailand) Co., Ltd.
    Established April 1, 2011
    Location Amata Nakorn Industrial Estate in Thailand
    (near the SKC Amata Nakorn Plant)
    Production area About 1,100 m2 (rented plant)
    Capital About 120 million yen
    (45 million baht at the exchange rate of 2.7 yen to 1 baht)
    Investment form 100% financed by Kubota Seiki Corporation
    * Kubota Seiki Corporation is a wholly owned subsidiary of Kubota
    Total investment amount About 120 million yen
    (44 million baht at the exchange rate of 2.7 yen to 1 baht)
    Business Production of hydraulic cylinders for tractors
    Production capacity 50,000 units per year
    Number of employees About 60 (2012)
    Start of production Mass production planned to start in July 2011

  2. Background to and aim of establishing new company

    • The aim was to help build the Kubota brand by establishing a base for the local production of hydraulic equipment, a key component of agricultural machinery, and supplying high-quality hydraulic equipment at a highly competitive cost to a local production base for agricultural machinery in Thailand (SKC).
    • We have established an integrated production system from the production of key components of agricultural machinery such as engines and hydraulic equipment to their assembly. In this way, we aim to strengthen cost competitiveness, avoid the risk of exchange rate fluctuations, and further expand and strengthen the agricultural machinery business.
    • In the future, as well as expanding the lineup of parts produced, we will use it as a global supply base that has external sales, and expand the business of hydraulic equipment.
  3. Future outlook

    Mass production will begin in July 2011, and the plan is to produce about 50,000 units in 2015.

    Map of Bases in Thailand
    Reference
    Profile of Kubota Seiki Corporation
    Established May 1947
    Location Mihara-ku, Sakai, Osaka
    Business Design, manufacture and sale of parts for agricultural machinery (hydraulic equipment, other precision machine parts)
    Capital 480 million yen
    Investment ratio 100% by Kubota
    Number of employees About 300
    Profile of SKC (SIAM Kubota Corporation Co., Ltd.)
    SKC Amata Nakorn Plant
    Established August 2010 (in a merger between The Siam Kubota Industry Co., Ltd. and Siam Kubota Tractor Co., Ltd.)
    Location of Head Office Navanakorn Industrial Estate, Tambon Khlongnueng, Amphur Khlongluang, Pathumthani 12120, THAILAND
    Business Manufacture and sale of tractors, combines, implements, horizontal diesel engines and cultivators to be shipped within Thailand or its neighboring countries
    Capital About 2.74 billion baht
    Investment ratio Kubota: 60% , Siam Cement Group: 40%
    Number of employees About 1,800
Enquiries regarding this press release
Corporate Communication Dept., Kubota Corporation
Public Relations Office TEL: +81-6-6648-2389

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