KOBELCO USA Announces Construction of Excavator Production Facility in North America

Jan. 13, 2015

January 12, 2015 — “KOBELCO Construction Machinery USA is pleased to announce its plan to construct a hydraulic excavator production facility in Spartanburg, South Carolina. KOBELCO’s market development has been proceeding at a faster rate than expected since its reentry into the US market in 2013. A production factory in North America will allow KOBELCO to reduce the production lead-time of machineries for its US customers and improve its capabilities for meeting market needs.

Site preparation for the US production facility will begin in April 2015 and is expected to be completed in December 2015. KOBELCO’s $41 million investment will involve the development of a 156,000 square foot production factory, 17,000 square foot office building, machinery parking and a testing area. The facility will sit on approximately 85 acres of land with space for future production capacity expansion and will have excellent access to major domestic ports, including Charleston, SC, and Savannah, GA.

With an estimated annual capacity of 1,800 units, the US factory will begin mass production in January 2016. KOBELCO plans to begin its production with standard machines weighing 20-tons and larger and increase the product line offerings and capacity in accordance with market development. Future production plans at the US facility are expected to include most of KOBELCO’s excavator models. “We are very excited to begin a new phase of our growth in North America,” states Pete Morita, President and CEO of KOBELCO Construction Machinery USA. “The announcement of our new manufacturing facility follows the move last fall into our much larger and enhanced new North American Headquarters and Parts Distribution facility in Katy, TX, as part of our plan for long-term dedication to our dealers and customers.”

By taking full advantage of its US production facility, KOBELCO will further enhance its service functions, reinforce its foundation in the North American market, continue increasing the presence of KOBELCO hydraulic excavators, and put a group-wide effort into growing its market share in North America.