Kawasaki to Expand Hydraulic Equipment Factory in China

Feb. 05, 2008


Tokyo, February 5, 2008 — Kawasaki Precision Machinery, Ltd. (KPM) today announced that it will expand a factory for manufacturing hydraulic products for construction machinery at its Chinese subsidiary, Kawasaki Precision Machinery (China) Ltd in order to meet the increasing demand in the Chinese market.

KPM China was established in December 2005 in Suzhou and started knockdown production of hydraulic pumps for construction machinery in August 2006. Aimed at enhancing product lines, the new facility will produce hydraulic motors and reduction gears. It will also increase the production of hydraulic pumps to meet growing customer needs.

KPM will install machining equipment in a newly leased factory building located adjacent to the current facility starting in May 2008 and begin production in July 2008. The new facility will initially implement knockdown production of hydraulic pumps using core parts supplied by KPM’s main works in Kobe and commence knockdown production of hydraulic motors and reduction gears in September 2008. This will boost KPM China’s monthly hydraulic pump production volume from 1,000 to 1,600 units and enable it to produce 1,000 hydraulic motors a month.

Overview of the New Facility

(1) Address: Yangshan Industrial Park, 9 Guanshan Rd., New District, Suzhou, People’s Republic of China
(2) Total floor area: 5,600 m2 (with some bi-level areas)
(3) Number of employees: 20 (projection as of September 2008)