Sumitomo Construction To Raise Excavator Output By 40%

Posted on August 9, 2006

According to Japan’s Nikkei Business Daily, Sumitomo Construction Machinery Co. plans to boost its hydraulic excavator production capacity 40% by the first half of fiscal 2007, over fiscal 2005 levels to 10,000 units a year. The company said it will spend 3 billion yen on a Chiba plant run by subsidiary Sumitomo Construction Machinery Manufacturing Co., its sole production site for hydraulic shovels. The investment, double its initial plans for this fiscal year, will be used to install equipment and improve production efficiency.

Sumitomo said brisk sales in North America, China and Turkey, and demand projected to continue increasing even after fiscal 2007, was behind the additional investment. The expansion will add painting equipment, welding robots and parts processing machinery as well as alter the assembly line layout to make operations more efficient.

The newspaper said that because the Chiba plant is nearing the limit of its production capacity, building an overseas plant in fiscal 2008 or later is also being considered.