New Marine Steering Gear Plant Completed in Korea

 Tokyo, November 7, 2005 – Kawasaki Precision Machinery Ltd. (KPM) announced today that its Korean subsidiary, Flutek Ltd., has completed a new plant for electric hydraulic steering gears for marine machinery. It is set to become KPM's hub for the production of marine steering gear products in Korea.

 Until June 2005, KPM had expanded its marine steering gear business in the country through a technical tie-up with Tong Myung Heavy Industries Co., Ltd., based in Changwon. Upon discontinuation of its ties with Tong Myung, KPM established a new marine machinery department within Flutek, an operation that is now being transferred to the company. Flutek's new Uiryeong Plant was built on a 9,900 m² lot in an industrial complex located 60 km northwest of Changwon. The plant's 3,600 m² of floor space is designed for optimized production of more than 150 steering gears for large ships per year.

 KPM's history with Flutek, which specializes in the production, sales and servicing of hydraulic machinery in Korea, dates from a service agreement for KPM's hydraulic machinery concluded in June 2000, followed by a technical tie-up for its K3V hydraulic pump beginning in July 2001. KPM acquired majority ownership of Flutek in April 2003, making it a subsidiary.

 Korea's marine steering gear industry is expected to experience continued growth thanks to buoyant business in the shipbuilding industry worldwide. The new plant will play a pivotal role in that growth.