Kubota, Yanmar Boosting Small Diesel Engine Capacity

Posted on January 9, 2006

According to press reports in Japan, Kubota Corp. and Yanmar Co., two of Japan's major industrial diesel manufacturers, are increasing production engines. Kubota reportedly plans to invest 10.9 billion yen to increase production capacity at three domestic plants. The move will boost annual capacity for industrial engines to 680,000 units by fiscal 2007, 60% more than last fiscal year.

This will be the first time in seven years Kubota’s capital spending has topped 10 billion yen. Further production increases will be considered after fiscal 2008 if engine demand continues to grow. The expansions come in response to rapid growth in demand for construction machinery powered by small and midsize engines, especially in the U.S. and China.

Yanmar aims to increase small engine production volume 50% to 450,000 units by fiscal 2007. To accomplish this, it will invest 3-4 billion yen over the next two years to add more parts processing and assembly lines at its main plant.