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.
- 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.
- 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
【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)