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Establishment of new tractor and combine harvester factory in China
— Increased production capacity for expansion of the upland farming machinery business

May 9, 2016

Kubota Corporation (Head Office: Naniwa-ku, Osaka, Japan; President and Representative Director: Masatoshi Kimata; hereinafter called “Kubota”) will establish a new factory for the manufacturing of tractors and wheel-type combine harvesters at Kubota’s Chinese manufacturing subsidiary “Kubota Agricultural Machinery (SUZHOU) Co., Ltd.” (hereinafter called “KAMS”). The aim of this increase to production capacity is to expand Kubota's upland farming business.

  1. Background
    • Kubota established KAMS in 1998 and it has manufactured and sold agricultural machinery such as combine harvesters and rice transplanters.
    • We established manufacturing lines for tractors in 2009 and for wheel-type combine harvesters in 2013 within rented factory space and continued to supply products whilst promoting the expansion of the business.
    • Kubota decided to establish a new factory (the second factory) within the grounds of the current KAMS factory in order to provide manufacturing support for the future expansion of the upland farming business. The procedures for the factory construction will be started after the environment related applications to the Chinese authorities and the environmental inspections.
    • Together with the increase in production capacity through this investment, we will also promote cost reductions and productivity improvements to realize product manufacturing that is even more competitive and to contribute to the further mechanization of Chinese agriculture.
  2. Overview of the New Factory
    Location Suzhou City, Jiangsu Province, People's Republic of China
    Scale Building area 29,000 m²
    Total investment Total 297 million Chinese Yuan (Approx. 5.64 billion Japanese Yen with exchange rate of 19.01 Yen to 1 Yuan)
    Items to be manufactured Tractors, wheel-type combine harvesters
    Production capacity Tractors: 10,000 per year,
    Wheel-type combine harvesters: 10,000 per year
    Start of operations November 2017

    Reference

    【Overview of KAMS】

    Company name Kubota Agricultural Machinery (SUZHOU) Co., Ltd.
    Established April 1998
    Location Suzhou city, Jiangsu, China
    Representative Ryuichi Minami
    Scale Site area: 127,000 m²/Facility area: 29,000 m²
    Capital 21 million US dollars
    Investment ratio 100% by Kubota
    Business Manufacturing and sales of combine harvesters, rice transplanters, and tractors
    Production Capacity Combine harvesters: 36,500 per year
    Transplanters:40,000 per year
    Tractors: 5,000 per year
    Number of employees Approximately 1,900 (as of 2016 April)

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