Japan’s Kubota to build new $53m production plant in US

WCN Editorial Team 17 Aug 2020 NORTH AMERICA BUILDINGS

Great Plains Manufacturing (GPM), a US-based subsidiary of Japanese tractor and heavy equipment manufacturer Kubota, is set to build a new JPY5.6bn ($53m) plant for the production of compact track loaders (CTLs) in Salina, Kansas.

The latest move is part of Kubota’s efforts to expand its business in North America, which is claimed to be the world’s largest market for compact construction machinery, and strengthen its sales network while enhancing product lineup.

Scheduled to be commissioned in September 2022, the new 74,000m2 facility is planned to be built on 647,000m2 of land.

The facility, which would employee 120 people, will be equipped to produce 3,000 units of SVL65 compact track loader in 2023.

Kubota expects the new plant to increase its production capacity and accelerate business expansion.

In a press statement, Kubota said: “By establishing this new production facility and thereby enhancing our capacity to quickly respond to our customers’ requests, we aim to further expand our business in the area of compact construction machinery.”

Kubota plans to transfer part of its CTLs production for the North American market at the Salina plant, once completed.
The company currently produces CTLs at its Sakai Plant in Osaka Prefecture, Japan.

As part of the expansion plan, Kubota purchased GPM in 2016. GPM is engaged in the development and production of tractor implements and construction machinery attachments in 2016.

The firm noted: “Currently, compact construction machinery for North America are mostly produced in Japan. Producing such machinery in the United State, where they are consumed, will enable us to reduce the lead time and mitigate the foreign exchange risk.”

The Kubota’s new plant will produce CTL model. (Credit: KUBOTA Corporation)

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