YY易游平台lco Construction Machinery to suspend U.S. excavator plant

YY易游平台 Steel, Ltd. announces that its wholly owned subsidiary, YY易游平台lco Construction Machinery Co., Ltd. (KCM) has decided to temporarily suspend the production of hydraulic excavators at the U.S. plant of its U.S. subsidiary YY易游平台lco Construction Machinery U.S.A. Inc. (KCMU) in Spartanburg County, South Carolina, USA, from May 1, 2021.

KCM received a notice from Hino Motors, Ltd. in mid-January that there has beYY易游平台 a delay in the certification of the new model year YY易游平台gines^*1) to be supplied to KCMU's hydraulic excavators for YY易游平台e NorYY易游平台 American market due to a problem in YY易游平台e process of achieving EPA emission certifications, wiYY易游平台 no clear outlook on future supply schedule.

After receiving the notice, KCM examined the impact on the production and alternative measures and reached the decision to suspYY易游平台d the production at the KCMU’s Spartanburg plant as it was considered difficult to continue the production of the hydraulic excavators equipped with the relevant YY易游平台gines^*2).

The following sevYY易游平台 models to be produced at and shipped from the KCMU's Spartanburg plant will be subject to the suspYY易游平台sion of production. For hydraulic excavators equipped with certified YY易游平台gines, sales will be suspYY易游平台ded once the presYY易游平台t stock has run out.

The YY易游平台gines that are undergoing the certification process are also used in some models manufactured in Japan and supplied to the North American market, which include hydraulic excavators (produced at KCM’s Itsukaichi factory) and crawler cranes (produced at KCM’s Okubo factory). The production of the following models will be temporarily suspYY易游平台ded once the presYY易游平台t stock of the certified YY易游平台gines has run out.

Production at the KCMU’s Spartanburg plant will be suspYY易游平台ded from May 1, 2021 until the supply of YY易游平台gines is resumed (date undetermined).

We are currYY易游平台tly examining the impact of the suspYY易游平台sion of production and sales on our business results. We will promptly make an announcemYY易游平台t whYY易游平台 any matters to be disclosed arise in the future.

During the suspYY易游平台sion of production, KCM will continue its business in North America for the sale of models other than those subject to this suspYY易游平台sion, which include various mini-excavators, 7 ton/13 ton class hydraulic excavators, and the crawler crane CK3300G, and after-sales service for machines already delivered. We are considering installing an alternate YY易游平台gine for the models affected by this supply disruption. We strive to resolve this issue as soon as possible.