Kobelco Construction Machinery Integrates in APAC Market for F2010-2012

Kobelco Construction Machinery announced the new mid-term management plan for fiscal 2010-2012 ending in March 2013, along which the firm concentrates management resources into Asia Pacific markets including China, Southeast Asia and India while optimizes domestic operations for better profitability. In fiscal 2015, the firm targets consolidated annual revenue at 400 billion yen with recurring profit of 40 billion yen or more. In fiscal 2010, net revenue is estimated to keep the level of fiscal 2008, approximately 260 billion yen, while recurring profit is planned to double.

Sales rate for Chinese market represented 45% in fiscal 2009, higher than 36% of domestic market sales rate. Chinese sales rate exceeded domestic sales rate for the first time. The firm intensively raises the sales rate for China, Southeast Asia and India.

Kobelco Construction Machinery’s production capacity in China is presently 12,000 units per year as a result of capacity expansion of Chengdu plant in December 2009. The firm eyes next capital expenditure in the country. In India, a new plant is scheduled to start commercial production in January 2011. In Southeast Asia, especially in Indonesia, the firm has organized service networks while seeks next sales chances in Vietnam and Myanmar.

In Japan, the firm plans to reorganize the sales network, review business compositions and improve productivity for more profitable management. The firm hopes to realize Hiroshima plant’s transfer during fiscal 2010-2012 though the transfer plan has suspended. At the same time, the firm establishes a global engineering center inside the headquarter office to optimize global business.