Kobelco Construction Machinery to Reorganize and Consolidate Group Companies in Southeast Asia

March 7, 2017
Kobelco Construction Machinery Co., Ltd.

Following the consolidation with Kobelco Cranes Co., Ltd. conducted on April 1 last year, Kobelco Construction Machinery Co., Ltd. (or KCM), headquartered in Tokyo, Japan has been reorganizing and consolidating group companies in both Japan and overseas. Continuing from the reorganization and consolidation in the Middle East, Africa and the Americas announced last December, KCM will undertake the reorganization and consolidation of overseas group companies in Southeast Asia as follows.

Reorganization & Consolidation of Group Companies in Southeast Asia

KCM will implement a reorganization of its business structure in Southeast Asia to streamline the business and enhance the sales and service structure in Southeast Asia. After the reorganization, a new company will serve as the Southeast Asia regional headquarters, integrating both manufacturing and sales. The regional headquarters will oversee the manufacturing of hydraulic excavators and the sales and service of hydraulic excavators and cranes in Southeast Asia.

The manufacturing of hydraulic excavators in Southeast Asia is currently carried out by Thai Kobelco Construction Machinery Ltd. (or TKCM). Overall sales and service of hydraulic excavators is handled by Kobelco International (S) Co., Pte. Ltd. (or KISCO) in Singapore and its directly managed dealers in the region. Overseeing the sales and service of cranes is Kobelco Cranes Southeast Asia Pte. Ltd. (or KCSA) also in Singapore.

In order to accommodate diverse needs in Southeast Asia more swiftly and precisely, KCM plans to establish a business structure can smoothly have a shared understanding of issues. By building a business management system integrating manufacturing and sales in Thailand — situated in northern Southeast Asia where growth in demand is expected in the future — that integrates manufacturing and sales in Southeast Asia, KCM aims to unify business operations in the region. KCM will develop a strong local sales network through more efficient operations and by strengthening its sales, dealer, and after-sales service networks in Southeast Asia.

Furthermore, KCSA will be merged into KISCO, and KISCO, as the surviving company, will continue with the crane business.

To maximize the effectiveness of the consolidation with Kobelco Cranes such as improvement of management efficiency, strengthening of product development capabilities, and enhancement of global expansion, KCM will carry out the reorganization and consolidation of group companies step by step.

Organizational Chart: Group Companies in Southeast Asia

○Current Structure

○After Reorganization

※List of Abbreviations
TKCM:Thai Kobelco Construction Machinery Ltd. (Thailand)
KISCO:Kobelco International (S) Co., Pte. Ltd. (Singapore)
KCSA:Kobelco Cranes Southeast Asia Pte. Ltd. (Singapore)
DKCMI:PT. Daya Kobelco Construction Machinery Indonesia (Indonesia)
KCMM:Kobelco Construction Machinery Malaysia Sdn. Bhd. (Malaysia)
KCMV:Kobelco Construction Machinery Vietnam Co., Ltd. (Vietnam)
RICON:Ricon Private Ltd. (Singapore)
KCMSA:Kobelco Construction Machinery Southeast Asia Co., Ltd. (Thailand)

Outline of the New Company:
Southeast Asia Regional Headquarters

Company Name

Kobelco Construction Machinery Southeast Asia Co., Ltd.

Head Office

Rayong Province, Thailand

Managing Director

Yuji Yoshio (Executive Officer, Kobelco Construction Machinery Co., Ltd. )

Stockholder

Kobelco Construction Machinery Co., Ltd. 100%

Purpose

Manufacture of hydraulic excavators,and sales and service of hydraulic excavators and cranes in Southeast Asia

Establishment April 1, 2017
Start of Operations April 1, 2017
Employees

570

References
○News release dated December 21, 2015
“Kobelco Construction Machinery and Kobelco Cranes to merge”
http://www2.kobelco-kenki.co.jp/english/corporateinfo/news/2015/dec21.html

○News release dated on December 6, 2016
“Reorganization and Consolidation of Group Companies”
https://www.kobelcocm-global.com/news/2016/161206/index.html

*The information contained herein is as of the date this announcement was made and it may be changed without a prior notice.