Kubota to Establish Production Facilities in the US and India for 2.2Bn

Supply chain issues trigger Kubota to shift excavator, skid steer and tractor production overseas

Kubota has established a solution for the current issues faced by the manufacturer that are caused by disruptions in the supply chain. In a press release to the media, Kubota announced that the manufacturer is set to build excavator, skid steers and tractor plants in not just in the U.S, but also India. The investment into these plants has been estimated to be over two billion dollars and set to be operational by 2020.

Currently the manufacturer’s plant in the Osaka prefecture has been hit with multiple delays due to issues within its supply chain and this move to establish these plants outside of Japan is expected not only to reduce cost of production, but also enhance its market outside of Japan and South East Asia. Apart from this announcement, the manufacturer has also diversified its interest into other areas of manufacturing such as the development of fuel cells.

The first of its fuel cell tractor is expected to roll out within the next 2 years in 2025. Kubota has indeed been making waves within the construction industry with their latest products and strategic business direction setting a pace for others to follow. The manufacturer’s latest skid steers and mini excavators have a significant market share compared to other manufacturers attributed to the latest technological features such as grade assist for excavators and lift sensors for skid steers which are state of the art.

For instance the company only recently launched the KX019-4SI 1.7 tonne mini excavator this year; however there has been significant delays and disruption which has impacted production volume.

The KX019 is a stage V spark ignition engine and powered with liquefied petroleum gas and according to the engineering team, the machine is capable of performing just as well as diesel and petrol powered excavators within its class. Tests reveal that despite the same performance, the machine emits much lesser nitrous oxide and according to some reports, the emission of nitrous oxide is lower by 95%. Other features of the machine include its adjustable track, low noise and gadgetry which bridge the experience gap of operators.

The release of the KX was immediately after the Kubota KC70H tracked mini dumper made its debut in most markets just months before. The KC70H is electric powered (lithium battery pack) which when fully charged is able to operate for a good 8 to 10 hours depending on the work load.

The entire construction industry is on a roll towards ‘environmentally friendly machines’ especially within the sphere of Kubota mini excavators and skid steer hire and as well as mini dumpers given the fact that these machines are the most utilised machines within the construction realm. Hitachi, Caterpillar. Takeuchi, New Holland and many other industry leaders are set to move towards electric powered machines and do their part in reducing their respective carbon footprints.

Even businesses involved in excavator and skid steer rentals are starting to gain interest on electric powered heavy machines as project managers look for small, noiseless and zero emission machines when dealing with urban projects or home improvement projects. Manufacturers such as Volvo CE have taken heavy machine tech a bit further than the others especially within the scope of remotely operated machines whereas companies such as Kubota and Komatsu emphasise on autonomous machines.

Regardless, of which manufacturer does what, the truth of the matter is that these manufacturers are all headed towards one direction and it is only a matter of time before they collaborate.