Kubota of Japan to build 3 plants in U.S. for $188 million
The move comes amid sluggish demand for agricultural machinery in Japan due to a decrease in the number of farmers.
The three new plants are for the production of compact machinery for housing construction, engines for construction machinery and multipurpose four-wheel vehicles that can be used for agriculture and leisure purposes. Kubota aims to bring the plants online by 2022.
The plant for compact construction machinery will be built in the Midwest, where Kubota has sales and logistic bases, at a cost of up to ¥10 billion. Construction of the plant will start next year.
In North America, demand for compact construction machinery has been growing on the back of an expansion of housing construction.
Kubota’s decision to build the new plant for compact construction machinery comes as its existing production facilities are in full operation.
The plants to make construction machinery engines and multipurpose four-wheel vehicles will be built in Georgia with an investment of some ¥5 billion ($47 milion) each.Speech ■