<Announcement> Kobelco to Expand Production Capacity of Hydraulic Excavator Factory in India

March 30, 2018
Kobelco Construction Machinery Co., Ltd.

Kobelco Construction Equipment India Pvt. Ltd. (or KCEI), an Indian subsidiary of Kobelco Construction Machinery Co., Ltd. headquartered in Tokyo, has decided to expand the production capacity of its hydraulic excavator factory in India and held a groundbreaking ceremony on March 20 in order to accommodate strong demand in the country.

The economy in India has been enjoying strong growth as infrastructure investments by the government have continued to increase. Demand for hydraulic excavators has also continued to increase with economic growth and is expected to remain strong. KCEI started out with a production capacity of 1,200 units a year in 2011 and has increased its production capacity to 2,000 units a year through various measures such as layout changes to accommodate growing demand. This time KCEI will carry out a full-scale expansion to push production capacity up to 3,000 units a year in order to fully accommodate the increasing demand in India as well as the increased production of machines for export.

The expansion work will cover a wide range of efforts including expansion of the buildings, revision of production processes in general such as improvement of assembly and paint processes, as well as enhancement of cooperation with the crane factory, improvement of safety, and creation of a better work environment. The construction is expected to be completed at the end of January 2019.

With this capacity expansion, not only will we deliver products to our customers in a timelier manner, we will continue to develop competitive products of higher quality.

Outline of Kobelco Construction Equipment India Pvt. Ltd. (KCEI)

Company Name Kobelco Construction Equipment India Pvt. Ltd.
Location [Headquarters] Noida, Uttar Pradesh, India (approx. 20km east from the center of Delhi)
[Factory] Sri City Industrial Park (75km north of Chennai) in Andhra Pradesh
Representative Yutaka Goto (Executive Officer, Kobelco Construction Machinery)
Stockholders Kobelco Construction Machinery Co., Ltd. 97% and Itochu Corporation Group 3%
Start of Operations January 2011 (Hydraulic excavator factory)
Business Operations Manufacture of construction machinery, and sales and service of construction machinery in India and Nepal
Products 14 to 50 ton class hydraulic excavators and 55 to 260 ton class crawler cranes
Production Capacity [Hydraulic excavators] Initially 1,200 units a year; currently 2,000 units a year; 3,000 units a year after the expansion
[Crawler cranes] 100 units a year
Employees 540 (as of the end of February 2018)
Area [Hydraulic excavator factory]
Site area of 68,800m² and building area of 13,900 (20,900) m²
[Crane factory]
Site area of 78,000m² and building area of 13,800m²
*The number within the ( ) is the value after the expansion.
Amount of investment
forthe expansion
832 million Indian rupees (about 1.4 billion yen)
*At the rate of 1.7 yen per Indian rupee.

Groundbreaking Ceremony
[Left] Ravindra Sanna Reddy, Founder, Managing Director, Sri City
[Center] Akira Kinoshita, Director, Senior Managing Executive Officer and General Manager of the Global Engineering Center, Kobelco Construction Machinery Co., Ltd.
[Right] Tetsuo Yamamura, Deputy Director, Shimizu Corporation

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