Kubota Increases Small Construction Machine Output by 5,000 Sets in 2010

Kubota, Japanese major industrial machine maker, plans to increase domestic production level of small size construction machine to full capacity. The demand is recovering rapidly mainly in Europe and China and turned upward in Japan and North America. The firm is increasing the capacity to 100 sets per day and 2,000 sets per month in Hirakata works, Japan. The firm plans the sales of small size construction machine at 18,000-19,000 sets in 2010, increasing by 4,000-5,000 sets from 2009.

The demand for small size construction machine dropped after Lehman’s fall. Kubota was forced into large output reduction. In EU, the market is expected to increase to 30,000 sets from 22,000 sets in 2010 from 2009. Kubota’s sales increased by over 150% for January-October from the same period of 2009.

The firm sets the sales plan at 2,700 sets in Chinese market in 2010. The current sales is higher by 160% year-on-year. The firm is reinforcing local sales network by reorganization and new contracts of distributors. The firm recently released 8-tonne class small size construction machine in China. The firm plans to increase the sales to 3,500-3,600 sets in 2011.

Kubota plans to start the operation of Chinese works in 2012. The plant is scheduled to produce small construction machine at 14,000 sets in 2018 and raise the market share to 25% from 13% in 2009.

The firm also plans to increase the market share in South Korea, North America, Australia and Southeast Asia. Kubota aims to increase the sales of construction machine business to 70 billion yen in fiscal 2010 ending in March 2011 and 90-95 billion yen in fiscal 2011.