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New plant for hydraulic components of agricultural machinery to be established in Thailand

July 23, 2012

Kubota Precision Machinery (Thailand) (hereinafter "KPMT") will construct a new plant to expand its business and to grow its competitiveness in global markets. KPMT was established by Kubota Seiki Corporation, a subsidiary company of Kubota Corporation (hereinafter "Kubota") in April 2011 as its first overseas production plant for hydraulic components. The existing plant of KPMT will be replaced with the new plant.

  1. Background and purpose of KPMT's new plant

    • KPMT started producing hydraulic cylinders for tractors in July 2011 and supplying their components to Kubota's assembly plant in Thailand -Siam Kubota Corporation (hereinafter "SKC") manufacturing tractors and combine harvesters.
    • It is urgent for Kubota to increase KPMT's production capacity since there is a strong demand for stable supply of high quality and cost competitive hydraulic components. The demand comes not only from SKC but also from several overseas plants of Kubota's because of intense competition in global markets.
    • KPMT will establish an integrated production system from processing to assembly. It will also start assembling hydraulic valves and transmissions to strengthen its production system.
    • KPMT will supply hydraulic components to overseas plants such as ones in the U.S. with its price advantage and stable supply. It aims to expand its agricultural machinery business more in global markets.
  2. Profile of KPMT's new plant

    Location Pinthong Industrial Estate in Thailand
    Scale New plant building area: 7,800 m2
    KPMT site area: 35,000 m2
    Total investment 390 million baht (approximately 1 billion yen at the exchange rate of 2.55 yen to 1 baht)
    Production items and capacity Hydraulic cylinders for tractors: 120,000 units per year
    Hydraulic valves: 140,000 units per year
    Transmissions: 20,000 units per year
    (production capacity is as of 2016)
    Number of employees Approximately 170 (as of the end of 2016)
    Mass production start January 2014 (planned)

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 Approximately 450 (as of June 2012)
[Profile of KPMT]
Company name Kubota Precision Machinery (Thailand) Co.,Ltd.
Established April 1, 2011
Capital Approximately 120 million yen (as of the end of March 2012)
Investment form 100% by Kubota Seiki Corporation
Overview of the existing plant
· Location Amata Nakorn Industrial Estate in Thailand
(near the SKC Amata Nakorn Plant)
· Production area Approximately 1,000 m2 (rented plant)
· Business Production of hydraulic cylinders for tractors
· Production capacity 50,000 units per year
· Number of employees Approximately 40 (as of June 2012)

Map of Bases in Thailand

Please direct inquiries about this press release to:
Public Relations Office, Corporate Communication Dept.,
Kubota Corporation
TEL: +81-(0)6-6648-2389

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