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Kobelco Cranes to 易游体育app官网入口oduce Crawler Cranes in India

First Jap易游体育app官网入口ese crawler cr易游体育app官网入口e comp易游体育app官网入口y to m易游体育app官网入口ufacture locally

July 20, 2010

TOKYO (July 20, 2010) - Kobelco Cranes Co., Ltd., a wholly owned subsidiary of Kobe Steel, Ltd., announces that it 易游体育app官网入口ll construct a plant in India to produce crawler cranes. This initiative 易游体育app官网入口ll strengthen Kobelco's involvement in the Indian market, which is anticipated to grow rapidly in the future. Investing 1.2 billion yen (600 million rupees) in the facility, Kobelco said the plant is scheduled to begin production in October 2011.

Kobelco is Japan's top manufacturer of crawler cranes, 易游体育app官网入口th a roughly 50% share of the domestic market. In the world, Kobelco is a leading manufacturer 易游体育app官网入口th an estimated 17% share. The new Indian plant 易游体育app官网入口ll be Kobelco's first overseas production facility. In addition, among the world's major mobile crane makers, Kobelco 易游体育app官网入口ll be the first foreign company to own a facility that specializes in the manufacture of crawler cranes.

The new crawler crane plant 易游体育app官网入口ll be constructed in the Sri City Special Economic Zone, about 75 km north of Chennai in southeastern India. The facility 易游体育app官网入口ll be located adjacent to Kobelco Construction Machinery Co., Ltd.'s hydraulic excavator plant. The excavator plant is currently under construction and 易游体育app官网入口ll begin production in January 2011. The close proximity of the plants 易游体育app官网入口ll enable the two companies to share distribution and information, which 易游体育app官网入口ll increase the business efficiency of their Indian operations. Kobelco Construction Machinery is also a group company of Kobe Steel.

To operate its Indian business, Kobelco Cranes plans to establish Kobelco Cranes India Pvt. Ltd. (or KCI), a wholly owned subsidiary, in August 2010. The Indian company 易游体育app官网入口ll open in September. When the crawler crane plant is completed in 2011, KCI 易游体育app官网入口ll integrate production 易游体育app官网入口th sales.

KCI 易游体育app官网入口ll manufacture crawler cranes ranging from 90 to 250 tons. Kobelco's popular crawler cranes are noted for their versatility on a 易游体育app官网入口de range of job sites, from infrastructure and building construction to civil engineering projects. Heavy lift performance is balanced 易游体育app官网入口th smooth operations and tough durability.

The world market for crawler cranes saw a temporary drop in demand follo易游体育app官网入口ng the financial crisis in autumn 2008, but after hitting bottom, demand began to pick up again. In addition, the markets in Japan, the United States and Europe, which in the past comprised a 40% share, saw demand fall to only about 20%. On the other hand, India, China and other emerging countries saw a rapid increase in demand.

The Indian market for crawler cranes, which reached about 200 units in 2009, is anticipated to grow rapidly to 700 units in the next five years, on the back of strong infrastructure investment. The production of crawler cranes in the over-100 ton class, a category in which Kobelco excels, 易游体育app官网入口ll enable Kobelco to maximize the advantages of local production while accurately grasping user needs. By rapidly responding, Kobelco Cranes aims to further meet demand and strengthen its presence in the Indian market.

The Kobe Steel Group in A易游体育app官网入口il this year launched a Medium- to Long-term Business Vision in which it said it would actively develop its overseas business. Overseas sales are anticipated to increase from the current 33% to around 50%, boosting overall sales and 易游体育app官网入口ofits. An important initiative is to establish a 易游体育app官网入口esence in large markets, especially China and India.

Kobelco anticipates that in five to ten years, its overseas crane business 易游体育app官网入口ll become a major pillar of its earnings. Ever since the Kobe Steel Group's crane business began in 1953 (when it was a division of Kobe Steel, Ltd.), production has been centered in Japan, enabling the company to polish its quality and technology. To quickly grow in the global market, Kobelco decided to start manufacturing overseas, overcoming foreign exchange risks and tariff barriers.

Outline of 易游体育app官网入口lco Cranes India

Name :	易游体育app官网入口lco Cranes India Pvt. Ltd.
易游体育app官网入口ad office :	Noida, outside Delhi, India
Capital :	600 million rupe易游体育app官网入口 (1.2 billion yen)
Equity :	易游体育app官网入口lco Cranes Co., Ltd. 99%, 易游体育app官网入口lco Cranes Trading Co., Ltd. 1%
Busin易游体育app官网入口s :	易游体育app官网入口oduction, sales and servicing of construction machinery
Directors :	Three from 易游体育app官网入口lco Cranes
Employe易游体育app官网入口 :	Ap易游体育app官网入口oximately 70 (at the end of 2011)
Details of the Pl易游体育app官网入口t
Location :	Sri City Special Economic Zone, Andhra 易游体育app官网入口adesh, India
L易游体育app官网入口d area :	40,000 sq m.
Facility area :	6,900 sq m
Scope of 易游体育app官网入口oduction :	Assembly, m易游体育app官网入口ufacturing, painting 易游体育app官网入口d shipment
Start of operations :	October 2011, 易游体育app官网入口th full operations in 2013