Yanmar America Corp.

Yanmar and Kobelco Agree to Expand Exchange of Mini Excavators

Yanmar Construction Equipment Co., Ltd. and Kobelco Construction Machinery Co., Ltd. have reached an agreement on the expansion of the OEM supply of mini excavators.

Yanmar currently offers 0.5- and 0.8-ton-class mini-excavator models to Kobelco in Japan. The sales area will now include worldwide coverage. OEM models currently include a single model in each of the 0.5- and 0.8-ton classes. This will be expanded to feature a zero-tail-swing model in each of the 1-, 1.7-, 2.0- and 2.5-ton classes, and a standard model in each of the 0.5-, 0.8-, 1.6-, 1.8-, 2.2- and 2.6-ton classes. (Availability of models may vary depending on sales area.) Start of the expanded OEM supply is planned for January 2015 in North America, South Korea and Oceania, and tentatively planned for April 2015 for Europe and Japan. Other areas are under consideration.

In addition, Kobelco will begin OEM supply of 2.0- to 5.0-ton class Ultra-Tight Turning mini-excavators to Yanmar for sale in Japan. This will include one model in each of the 2-, 3-, 3.8- and 5.0-ton classes. Start of OEM supply is tentatively planned for Summer 2015.

By dividing development and production operations between the two companies, both will be able to better focus on their respective areas of expertise to ensure greater profitability. Sales of Ultra-Tight Turning mini-excavator models are not expected to grow internationally, but there is a demand domestically in Japan. By utilizing OEM models for the 4.0- and 5.0-ton classes that must adhere to gas emission regulations, development costs and man-hours can be reduced. In addition, the expansion in OEM supply of 2.5-ton and under models will boost production, leading to a faster return on development investment and a reduction in production costs.

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