December 26 , 2012
[SUPPLEMENTAL INFORMATION]
Kobelco Construction Machinery’s Future Business Development

With the ending of the global alliance with CNH Global N.V., Kobelco Construction Machinery Co., Ltd. from January 2013 will be able to grow its business on its own and sell the KOBELCO brand hydraulic excavators in world markets. These machines are well-known for their advanced technologies such as low fuel consumption, low noise and onboard GPS. Kobelco Construction Machinery will build its own sales network and promote the KOBELCO brand around the world.

1. Re-entering North America, South America, Europe, the Middle East, CIS & Africa:
Rebuilding independent sales and service networks, introducing the latest models

With the ending of the global alliance with CNH, Kobelco Construction Machinery will independently rebuild its sales and service network in North America, South America, Europe, the Middle East, CIS and Africa. It will once again conduct business activities in those markets. Prior to the formation of the global alliance, Kobelco had been operating on its own in those six areas. The KOBELCO brand is especially highly regarded in North America and South America, and those markets have high expectations for Kobelco Construction Machinery’s re-entry.

Kobelco Construction Machinery will immediately place on the markets of those six areas its latest models with core features of lower fuel consumption, lower noise and onboard GPS.  New models that also comply with the latest exhaust gas regulations will be launched onto the North American and European markets starting from April 2013.  Kobelco plans to develop products that meet local needs and enter markets where it was unable to directly play an active role under the global alliance with CNH.  It also aims to increase its sales volume and market share that had gone down under the global alliance.  By conducting business activities closely at the local level, Kobelco Construction Machinery will be able to give feedback on customer needs to its Global Engineering Center (GEC) in Itsukaichi, Hiroshima City, Hiroshima Prefecture, Japan for product development.  For the time being, Kobelco Construction Machinery plans to utilize its current plants in Japan, China, Thailand and India to meet its requirements.

In Japan, China, Southeast Asia and Oceania, Kobelco Construction Machinery has established its solid presence by its direct sales and marketing activities.  In the six areas that it will re-enter, Kobelco Construction Machinery believes it can increase sales volume and expand market share.  Kobelco Construction Machinery is aiming to gain new markets, which it was unable to do under the alliance with CNH.

2.　Strengthening the markets of Japan, China, Southeast Asia, Australia and India

The 10 years of the global alliance divided the world’s marketing areas between Kobelco Construction Machinery and CNH.  Kobelco Construction Machinery was devoted to strengthening its businesses in Japan, China, Southeast Asia and Australia.  This enabled Kobelco Construction Machinery to focus its management resources on rapidly growing Asia including China and Southeast Asia.  The company currently has one plant in Thailand, two in China, and one in India.  In May, Kobelco Construction Machinery moved to Itsukaichi, Hiroshima to establish a state-of-the-art production facility and system that improves its competitiveness both in Japan and overseas.

The establishment of the GEC promotes advanced technical development and product development drawn on customer needs. As the mother facility, the Itsukaichi Factory provides feedback to the plants in Thailand, China and India.  Implementing a detailed sales policy and offering an improved sales and service network, Kobelco Construction Machinery has captured a market share of over 20 percent in Japan and Southeast Asia, 13 percent in China (among foreign-affiliate manufacturers), and 10 percent in Australia.  Kobelco Construction Machinery will continue to focus on China, Southeast Asia and India, where high growth is expected to continue.

Media Contact: Publicity ＆ Secretariat Group
KOBELCO CONSTRUCTION MACHINERY CO.,LTD.  Tokyo, Japan  Tel +81-3-5789-2112