June 25, 2018
Kobelco Construction Machinery Co., Ltd.
Since last year, Kobelco Construction Machinery Co., Ltd. (or KCM) headquartered in Tokyo has been working on a fundamental review of the business in China and the dissolution of the joint ventures with Chinese investors to put business operations under our initiative. We have completed the dissolution of the joint ventures in China as follows and the restructuring of the business has been completed for the most part.
As it became clear that there was a difference of opinion with the Chinese partners regarding business issues in China, we dissolved the joint ventures with the Chinese partners in October 2017. Upon completion of the dissolution, we implemented a fundamental restructuring of the business structure in China under our initiative. With the restructuring, companies in Chengdu that were separately in charge of manufacture and sales will be consolidated into one business entity with integrated manufacturing and sales to share and recognize issues smoothly and implement business operations swiftly and efficiently. Furthermore, we will establish a solid local sales network through revision and enhancement of manufacturing, sales, the dealer network, and the after-sales service network as well as through improvement of receivables management.
Prior to the restructuring, we changed the name of CKCMG, a company in charge of sales and services in Chengdu, to Kobelco Construction Machinery (China) Co., Ltd. (or KCMC) as of March 15, 2018.
|Manufacture of hydraulic excavators||Chengdu Kobelco Construction Machinery Co., Ltd. (CKCM)||Chengdu|
|Hangzhou Kobelco Construction Machinery Co., Ltd. (HKCM)||Hangzhou|
|Manufacture of component parts|
|Kobelco Precision Machinery Hangzhou Co., Ltd. (KPMH)|
|Sales and service operations of hydraulic excavators||Chengdu Kobelco Construction Machinery Group Co., Ltd. (CKCMG)||Chengdu|
|Construction machinery leasing||Chengdu Kobelco Construction Machinery Financial Leasing Ltd. (CKCML)|
|Manufacture, sales, and service operations of cranes||Chengdu Kobelco Cranes Co., Ltd. (CKCL)|
|Sales and service operations of cranes||Kobelco Cranes (Shanghai) Co., Ltd. (KCSH)||Shanghai|
|Manufacture, sales, and service operations of hydraulic excavators||Kobelco Construction Machinery (China) Co., Ltd. (KCMC)||Chengdu|
|Manufacture of hydraulic excavators and component parts||Hangzhou Kobelco Construction Machinery Co., Ltd. (HKCM)||Hangzhou|
|Construction machinery leasing||Chengdu Kobelco Construction Machinery Financial Leasing Ltd. (CKCML)||Chengdu|
|Name||Kobelco Construction Machinery (China) Co., Ltd.|
|Headquarters||Chengdu, Sichuan Province, China|
|President||Shinji Kito (Managing Executive Officer, Kobelco Construction Machinery)|
|Shareholder||Kobelco Construction Machinery Co., Ltd. 100%|
|Purpose||Manufacture, sales, and service operations of hydraulic excavators in China|
|Establishment||March 15, 2018 (name change)|
|Employees||996 (Simple total of KCMC and CKCM as of June 15, 2018)|
○Consolidation announcement news release dated November 17, 2003
“Kobelco Construction Machinery and Manitowoc Crane Group had signed crawler crane agreement”
*The information contained herein is as of the date this announcement was made and it may be changed without a prior notice.