Reorganization of Used Construction Equipment Companies in Japan and Companies in India

May 9, 2017
Kobelco Construction Machinery Co., Ltd.

Following consolidation with Kobelco Cranes, Co., Ltd. on April 1 last year, Kobelco Construction Machinery Co., Ltd (or KCM), headquartered in Tokyo, Japan, is reorganizing its used construction equipment companies in Japan and companies in India.

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

Reorganization of Used Construction Equipment Companies in Japan

With the goal of strengthening its management foundation and streamlining the used construction equipment business in Japan, KCM has consolidated two affiliated used construction equipment companies in Japan. The consolidated company is in charge of purchasing and selling used construction equipment centering on hydraulic excavators and cranes.

Originally, the used excavator business and the used crane business had been handled by Kobelco Construction Machinery International Trading Co., Ltd. and Kobelco Cranes Trading Co., Ltd. respectively. However, in order to improve business efficiency and optimize optimum business operation, KCM decided to consolidate the two companies. With Kobelco Construction Machinery International Trading Co., Ltd. as the surviving company, KCM aims to expand its sales channels and strengthen its purchasing function in Japan.

Outline of the Company after Consolidation

Company Name Kobelco Construction Machinery International Trading Co., Ltd.
Representative Kenji Fukuya
Sites Ichikawa Used Machinery Center, Yokohama Used Machinery Center, Kobe Used Machinery First Center, Kobe Used Machinery Second Center
Capitalization 100 million yen
Stockholder Kobelco Construction Machinery Co., Ltd. 100%
Purpose Purchase and sales of used construction equipment
Establishment September 2003
Employees 22
Consolidation April 1, 2017

Reorganization of Companies in India

With the goal of streamlining the business and improving the production, sales, and service framework in India, KCM will consolidate two subsidiaries in India. The consolidated company will oversee the manufacture and sales of hydraulic excavators and crawler cranes, as well as dealers in India.

Originally, the manufacture, sales and service of hydraulic excavators and the manufacture, sales and service of cranes in India had been handled by Kobelco Construction Equipment India Pvt. Ltd. (or KCEI) and Kobelco Cranes India Pvt. Ltd. (or KCI) respectively. However, in order to improve business efficiency and optimize business operations in India, KCM decided to consolidate the two companies. With KCEI as the surviving company, KCM aims to strengthen its production, sales and service framework in India.

Outline of the Company after Consolidation

Company Name Kobelco Construction Equipment India Pvt. Ltd.
Representative Yutaka Goto (Executive Officer, Kobelco Construction Machinery)
Head Office Noida, Uttar Pradesh (Approx. 20 km east of the center of Delhi)
Factory Sri City Industrial Park, Andhra Pradesh
(75 km north of downtown Chennai)
Capitalization 3.316 billion Indian Rupee
Stockholder Kobelco Construction Machinery Co., Ltd. 96.985%
ITOCHU Corporation 3.015%
Purpose Manufacture, sales and service operations of construction machinery in India
Establishment November 2006
Employees 702
Consolidation Corporations consolidated retroactive to April 1, 2017 upon completion of consolidation procedures in India

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

○News release dated March 7, 2017
“Kobelco Construction Machinery to Reorganize and Consolidate Group Companies in Southeast Asia”
https://www.kobelcocm-global.com/news/2017/170307/index.html

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