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Increasing Production Capacity of Horizontal Type Diesel Engine Plant in Indonesia
— Responding to increasing demand for horizontal type diesel engines with agricultural mechanization in Indonesia —

October 8, 2013

Kubota Corporation (Headquarters: Osaka, Japan; Chairman of the Board and President: Yasuo Masumoto, hereinafter "Kubota") has announced it will increase production capacity of P.T.Kubota Indonesia (hereinafter "PTKI"),a company that manufactures horizontal type diesel engines in Indonesia.
We will respond to increasing demand for horizontal type diesel engines with agricultural mechanization in Indonesia and further expand our engine business in Southeast Asia.

  1. Background and purpose of plant relocation and production increase
    • Kubota manufactures and sells horizontal type diesel engines widely prevailing in Southeast Asia as a source of power for power tillers and irrigation pumps and has the biggest market share in Indonesia.
    • In recent years, along with its economic development, Indonesia is experiencing agricultural development due to the labor shortage in agricultural areas, and demand for power tillers is expanding.
    • Kubota will move PTKI to the industrial estate and at the request of Semarang city and double its production capacity for expanding demand of horizontal type diesel engines by agricultural mechanization.
  2. Overview of the new plant
    Location Bukit Semarang Baru, Semarang, Republic of Indonesia
    Scale Plant building area: 21,000 m²
    PTKI site area: 74,000 m²
    Total investment 351 billion rupiahs (approximately 3.16 billion yen at the exchange rate of 1 rupiah to 0.009 yen)
    *Combined total investment for both plant relocation and production increase
    Production items and capacity Horizontal type diesel engines: 120,000 units per year (as of 2015)
    Number of employees Approximately 450 (as of 2015)
    Mass production start July 2014 (planned)
    < The image of external view of the new plant >
    < Horizontal Type Diesel Engine >
    <Reference>
    [Overview of PTKI]
    Company name P.T.Kubota Indonesia
    Establishment July 17, 1972
    Business Manufacturing and sales of horizontal type diesel engines
    Overview of the existing plant
    Location JL. Setyabudi 279,Semarang, Republic of Indonesia
    Scale Plant building area: 18,000 m²
    PTKI site area: 59,000 m²
    Production capacity 60,000 units per year(as of 2013)
    Number of employees Approximately 420 (as of October 2013)

    * The existing plant will be closed in June 2014 as production begins at the new plant.

    <Positions of the new plant and bases in Indonesia>

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