Business Expansion over the past 30 Years
From Our Centenary to Our 130th Year
Soaring toward the Realization of "Global Major Brand Kubota"
In the year 2020, Kubota reached its 130th anniversary.
Upon its centenary 30 years ago in 1990, the Kubota Group had an approximately 15,000-strong workforce. Sales were approximately 820 billion yen. Now, the Kubota Group has cemented its position as a global company. The group currently boasts more than 180 consolidated subsidiaries in 120 countries, and a workforce of around 52,000. Sales have grown to 3.20 trillion yen, and overseas sales made up approximately 80% of this total.*
In the group's efforts to become “Global Major Brand (GMB) Kubota,” this significant growth is testimony to the hard work of employees around the world, who progressively implemented a range of different businesses with unwavering dedication to the group's brand statement—For Earth, For Life.
Here we introduce the group's endeavors over the last 30 years as it sought to contribute to issues pertaining to food, water, and the environment on a global scale.
Consolidated revenue & Overseas revenue ratio
1990s
1990–1999
Entering its Second Century in Business
—The Launch of a New Kubota
Kubota Corporation: A new name in accordance with the company's 100th anniversary
In 1990, the year of the International Garden and Greenery Exposition in Osaka, Kubota celebrated its 100th anniversary, and underwent a name change from Kubota Casting Works to Kubota Corporation. Removing "Casting Works" from its name—an identity which had been carried forth since its founding—reflected the company's expansion into a diverse range of business fields. The company also adopted a new corporate symbol to represent its new, flexible, and dynamic approach.
With the collapse of the economic bubble in 1991, the 1990s in Japan was the first half of a period of economic stagnation which later came to be known as the "Lost 20 Years." It was also the time when various social issues came to the fore, such as low birth rates and aging populations, population decline in rural areas, and decreasing farming populations.
Against this backdrop, Kubota searched for ways in which it could develop alongside society. In response, the company launched a new corporate slogan—Let's make our habitat more beautiful—and in 1993 announced its "Vision for the second century of Kubota," and began work to shape a new future for the company.
Clarifying its dedication to solving environmental issues
One feature of this new Kubota was proactive involvement in environment-related businesses. Kubota's business initially began with the production of iron pipes for waterworks in the late Meiji period, through which it helped to eradicate water-borne diseases such as cholera. This determination to create products that benefit society has been an ongoing theme throughout the company's history.
In the 1990s in Japan, the dioxins emitted from waste incineration caused serious environmental issues, and the reduction of toxic substances and waste became a pressing issue. Kubota developed a number of products in response, such as a melting furnace to treat incinerated ash, and a power generation system that utilized waste as fuel. In 1999, Kubota's underwater dioxin decomposition unit was awarded the Nikkei Outstanding Product/Service Prize.
Kubota designed and installed Japan's first power generation system to use waste as fuel.
It was also at this time that the world began scrutinizing the impact that global warming had on natural ecosystems. The reduction of greenhouse gases became a global concern, and the Kyoto Protocol was adopted in 1997. Kubota was one of the first to begin development of clean diesel engines, and in 1993 became the first company in the world to clear the ULG emission regulations set by the California Air Resources Board (CARB). Kubota was also working to promote environmental management in-house, and in 1992 formulated the Kubota Global Environmental Charter. In 1995, the company launched an Environment Audit System, whose standards exceeded existing laws and regulations. Further, to support the development of personnel who could lead environmental planning on a global scale, Kubota helped to launch an environmental planning course at the University of Tokyo.
The equipment decomposes and detoxifies toxic substances such as dioxins and agricultural chemicals found in leachate from waste treatment plants. The first-ever unit in Japan began operation in 1998.
The Great Hanshin earthquake occurred in 1995. Kubota worked to rebuild the plants and offices that had been affected, while offering its support to the disaster-stricken areas. Although many water pipes burst and were damaged, the earthquake-resistant ductile iron pipes developed and produced by Kubota were unaffected—proving their effectiveness even against massive shocks like those in the Great Hanshin earthquake. This discovery contributed to the spread of earthquake-resistant pipes.
In addition to finding solutions to food issues through agricultural machinery and solving water issues through water pipes, Kubota stepped up its efforts in environment-related fields. It was in the 1990s, then, that Kubota began focusing on the core businesses that laid the foundation for its current mission: Solving social problems connected with food, water, and the environment.
Kubota provided mini excavators and other equipment that could be used in narrow spaces to support recovery efforts following the Great Hanshin earthquake.
Expanding overseas production systems
With the end of the Cold War and the development of emerging nations, the 1990s saw an increase in free trade agreements. It was also around this time that the term "global" came to be used more frequently.
In 1976, Kubota became the third Japanese company to be listed on the New York Stock Exchange, making significant progress with its internationalization strategy, but it was in the 1990s that the company's overseas production really began to take off. This began in 1989 with the production of compact construction equipment in Germany and tractor implements in North America.
A unique feature of Kubota's overseas expansion was its deployment of development engineers to overseas regions. These engineers were tasked with keeping their eyes and ears to the ground to thoroughly ascertain local needs, and develop and supply products optimally suited to these requirements. In North America, where Kubota began business activities in 1969, the company created a new market for compact tractors using diesel engines. Up until then, gasoline powered equipment had been mainstream, but this new development enabled Kubota to acquire a large share of the gardening equipment market. In 1997, Kubota established an overseas subsidiary dealing in engines, moving forward with the development of high horsepower tractors, customized engines, and other engine applications.
Meanwhile, Kubota saw the opportunity for modernization and mechanization in China, which had continued to achieve economic growth. And so, in 1998, the company began local production and sales of combine harvesters, as well as steel casting products for the petrochemical market.
Kubota proceeded with the development of combine harvesters in China in line with the mechanization of rice harvesting and other local advancements
In its water business, in 1998 Kubota received an order from the UK for its submerged membrane wastewater treatment system for processing sewage and wastewater, and began worldwide deployment the same year. In 1991, Kubota pioneered the membrane bioreactor (MBR) market, beginning sales of submerged membranes. By combining microorganism-based decomposition treatment with membrane filtration, this original technology not only made water clearer, but also removed organic matter such as E. Coli.
It was the 1990s in which Kubota laid a firm foundation in countries across the world as it sought to become a global citizen.
The treated water can be discharged into the local river or used for irrigation. The system is easy to maintain, and boasts numerous other benefits.
2000s
2000–2009
Proceeding with Global Expansion at Full Tilt
—Confronting the World's Problems
Expanding core businesses and enhancing overseas presence
The start of the 21st century saw the rapid, worldwide growth of information technology, and through the internet, people began seamlessly connecting with one another across borders. This change led to a transformation in economic activity, strengthening economic ties across the world, and driving globalization.
In addition to continued prosperity in the US and economic and social integration in Europe, BRIC nations (Brazil, Russia, India, China, and South Africa) came to the fore, with China in particular continuing its high economic growth. The financial crisis of 2008, however, plunged the global economy into sharp decline.
Japan was still in an economic slump following the collapse of the bubble in the early 1990s, and in addition to reduced numbers of public projects, the nation's diminishing population and deteriorating rural areas became serious problems. Moreover, not only had the farming population dropped below three million, it was also ageing rapidly.
In the 2000s, Kubota formulated a new management policy, resolving to expand its core businesses in Japan and overseas. The aim was to utilize its accumulated expertise to increase its share in diverse market segments. The company thus steered its focus toward private demand and overseas markets, and proceeded with globalization at full tilt. Representative of this policy was the utility vehicle, which went on to be a huge success upon its release in North America in 2004.
Kubota also looked to accelerate projects and activities that would contribute to the resolution of social issues. The company's participation in the Teshima Waste Treatment Project in 2000 was an initiative to create a model for a recycling-based society. The Kubota E-Project of 2008, meanwhile, began as a social contribution project to provide support to agriculture businesses and farmers, but has expanded to include environmental conservation efforts and support for the disabled.
In 2006, the Kubota Group formulated its Corporate Mission Statement, Management Principles, Charter for Action, and Code of Conduct. The corporate slogan at this time was "Building foundations," with "For Water, Soil, Air and People's Lives" and "Let's make our habitat more beautiful" established as sub-slogans.
Kubota offered its support to clean up a large amount of industrial waste which had been illegally dumped on Teshima Island in the Seto Inland Sea. After over a decade of hard work, Kubota succeeded in recycling all of the waste on the island.
Despite a sluggish domestic economy, in FY2009 Kubota's consolidated sales grew to 1.1 trillion yen. Key to this growth was global expansion, which laid the foundations for the global reach that Kubota has today.
Expanding businesses in North America and Asia—Overseas sales ratio grows to more than 50%
In the 2000s, Kubota began work to open up new markets overseas in earnest, and in FY2008, overseas sales accounted for more than 50% of the company's total. The cornerstones of this growth were the machinery business in North America and market development in Asia.
Appreciation of the yen following the Plaza Accord of 1995 had a negative effect on the North American market. In the 2000s, Kubota created a new market for gardening-use tractors using diesel engines. Together with the highly popular utility vehicle, Kubota created new segments outside of agriculture that helped to build support for the brand. This success can also be attributed to measures that sought to reinforce the company's network of dealers using the experience it had accumulated in Japan. Kubota also proceeded with local production, and in 2006, completed construction of a new factory to produce tractor implements.
With a robust, easy-to-maneuver design and a compact diesel engine, the utility vehicle was a huge hit.
In China, where there was high demand for combine harvesters, Kubota came to be known for the durability of its products and the quality of its after-sales service. Kubota products penetrated the market, and the company began local production. In Thailand, where mechanized agriculture was growing, in 2009 Kubota became the first Japanese company to begin local production of tractors. It was 2008 when Kubota began work on the agricultural machinery markets in India and Vietnam. The former was home to the world's biggest tractor market, while the latter had achieved rapid economic growth.
Elsewhere, Kubota entered the dry-field farming market in Europe. In Japan, the proactive launch of new products meant that, in 2004, Kubota's five main models accounted for more than 40% of the market by volume, and in 2005, the company's total tractor production exceeded three million units.
It was in the 2000s, then, that Kubota began full-fledged construction of a global system comprising four central pillars: Japan, North America, Europe, and Asia.
Siam Kubota Tractor was established through a joint venture with a major Thai corporation owned by the royal family. Kubota was the first Japanese company to produce tractors in Thailand.
Acquiring the largest share of the compact construction equipment market and growing the submerged membrane business globally
Not only did Kubota seek global expansion in its agricultural business in the 2000s, it also sought global growth in its construction equipment business and its water and environment business.
The company's construction equipment business gained broad support through its mini excavators, and having claimed top spot in global sales in 2002, the company has maintained the position ever since. China's remarkable economic growth, meanwhile, led to an increase in construction demand. In response, in 2003 Kubota established a sales company in China, reinforced its dealer network, and focused on developing the market.
The water environment is an area that is closely linked to people's lives, and with natural conditions and infrastructure differing by country, needs are wide-ranging. As a pioneer in the water business, Kubota has contributed to solving a range of water-related issues.
This compact piece of construction equipment is widely used across the world. The excavator's outstanding functionality and operability is one of its biggest strengths.
Kubota's submerged membrane technology, which uses MBRs to purify sewage and industrial wastewater, saw great success in the 2000s. To drive the business forward, Kubota set up local subsidiaries in the UK in 2001 and in the US in 2005, and proceeded to extend the business to Europe, North America, and other countries around the world. To date, the company has delivered and installed more than 6,000 submerged membrane wastewater treatment systems, which is the second highest number in the world.
In 2000, Kubota completed construction of a water supply facility in Giza, Egypt, which it had been working on for nearly ten years. This project aimed to secure drinking water for up to one million local residents. Essential to people's livelihoods, Kubota also engaged in various other projects to improve water environments.
In India, Kubota began production of iron pipes for waterworks in 2009. The business began under tough conditions, however, and the company had no choice but to withdraw soon after. Kubota has used experiences such as these to continue propelling its water business forward on a global scale. Key to this drive has been the company's continued determination to create products that benefit society.
Kubota installed pump equipment and ductile iron pipes to a water supply facility in Giza, a city famous for its great pyramids. The facility contributed greatly to improved lifestyles for local residents.
2010s
2010–2019
For Earth, For Life
—Contributing to the World as Global Brand
Focusing on food, water, and the environment and becoming "Global Major Brand Kubota"
Following the financial crisis of 2008, the world entered the 2010s. While growth in advanced countries had slowed, emerging nations saw growth through increased domestic demand, and the driving forces of the global economy began to diversify. Further, with increased use of big data, the implementation of AI technology, and the introduction of robotics, the world welcomed the so-called Fourth Industrial Revolution.
Japan's declining population had become a problem, and although its economy continued to see modest growth, a number of other issues came to the fore, such as worker shortages. The Great East Japan Earthquake occurred in 2011, and a number of other large-scale natural disasters followed.
Upon its 120-year anniversary in 2010, Kubota created a new group slogan—For Earth, For Life—and clarified its determination to solve problems related to food, water, and the environment on a global scale.
Five years later in 2015, the United Nations adopted the Sustainable Development Goals, a set of 17 targets that aim to solve the issues the world faces today. Among others, the SDGs aim to eliminate poverty and hunger, guarantee safe drinking water for all, and tackle climate change. The targets of the SDGs were consistent with Kubota's corporate mission, and using them as a compass, Kubota once again vowed to work toward solving the world's problems through businesses essential to people's lifestyles.
One of Kubota's major initiatives at the time was its work to solve global food problems. The company entered the dry-field farming market, and sought to increase agricultural productivity through precision farming. Meanwhile, to ensure the supply and recycling of safe water, Kubota engaged in diverse infrastructure development, particularly in Asia.
Kubota went on to establish controlling companies in China and Europe, and as a result of proactive business development in its four main regions—all of which was closely linked to local issues and needs—in FY2020 the company's consolidated sales grew to 1,853.2 billion yen. Of this total, overseas sales accounted for nearly 70%.
This outstanding achievement was thanks to the group's more than 40,000-strong workforce, whose unwavering efforts made "Global Major Brand Kubota" a reality.
Zero Poverty through dry-field farming and precision farming
Globally, there is thought to be four times more agricultural land for dry-field farming than there is for rice farming. In anticipation of global population growth and the ensuing food issues, Kubota made the decision to enter the dry-field farming market. After numerous tests, in 2014 Kubota completed development of the large M7001 tractors for dry-field farming. The company began mass-production at a new plant in France, and the product went on to win critical acclaim at an international trade fair. Kubota achieved product synergy with Kverneland Group it had welcomed into the group, and as a result, the M7001 gained broad support in Europe and North America. In the US, Kubota moved its sales site to Texas in 2017, stepping up its activities in the epicenter of dry-field farming.
The M7001 tractors were awarded the Machine of the Year 2015 prize at the Paris International Agribusiness Trade Show. The tractor's integrated controls for precision farming were rated highly.
In Asia, Kubota was working to establish an optimal production system. In Thailand, the company established an integrated site to take charge of development and production, and moved forward with the development of agricultural machinery ideally suited the characteristics of surrounding nations. One result of these efforts was the multi-purpose tractor, which went on sale in 2015 in India, one of the world's largest tractor markets. Later in 2018, Kubota established a joint venture with Escorts Limited, a local tractor manufacturer, which went on to launch a tractor manufacturing business in India. Kubota also established overseas subsidiaries in Cambodia, Laos, and Myanmar and began local sales of agricultural machinery. In China, the company started production of tractors and wheel-type combine harvesters for the dry-field farming market in 2017. Kubota products also began to play an active role in farms in South America and Africa, and the total number of tractors produced surpassed four million.
In Japan, to offer its support to the ageing farming population and large-scale agriculture businesses, Kubota presented its proposal for smart agriculture. Incorporating ICT and robotics technology from an early stage, Kubota would go on to commercialize KSAS (Kubota Smart Agri System), a farming management support system that visualized and streamlined farming operations; unmanned, autonomous agricultural machinery; and power-assist suits that lessened farming workloads.
These efforts were not limited to Japan. On a global scale, Kubota contributed to the realization of precision farming, a concept that facilitates efficient production of high-yield, high-quality crops through advanced farming management.
In India, tractors were used for both agriculture and everyday life. In response, Kubota developed the multi-purpose tractor, which boasted outstanding fuel efficiency and operability.
Meanwhile, in its construction equipment business, which pioneered the mini excavator, Kubota still held the top share of the global mini excavator market. In 2011, the company reinforced its supply capabilities by beginning production of construction equipment in China, increasing its presence at construction sites across the world.
The heart of agricultural machinery and construction equipment is the engine. With a diverse lineup of around 2,000 engines for various uses, Kubota is considered a global leader in industrial-use and compact, general-use engines. In 2011, the company developed a compact diesel engine that was the first in the world to meet Tier 4 Emission Standards, while also meeting the notoriously strict European Stage V Standards. It wasn’t only Kubota's products that were environmentally friendly, however—in 2010, Kubota was awarded the Eco-First certification by the Ministry of the Environment for its overall business operations. Elsewhere, the company was actively promoting environmental management through the launch of the Eco-Products Certification System and other means.
Japanese farmers had long struggled to expand their export operations. To support their efforts, Kubota established companies in Hong Kong (2012) and Singapore (2013) to take charge of the import, polishing, and sales of Japanese rice.
Contributing to safe and secure water environments across the world
Globalization brought great change to emerging nations. In Asia, economic advancement led to the development of social infrastructure, and the need for rapid improvements in water environments came to light. From around the mid-2010s, Kubota extended its water environment business to Myanmar, Bangladesh, and other Asian nations, constructing water pipes, drainage pipes, and water treatment facilities, and installing wastewater treatment plants. This work contributed to improved safety and hygiene in local residents' lives. In 2010, Kubota made a full-scale entry into the water market in China.
In the Middle East, meanwhile, Kubota had spent many years building strong relationships of trust. In Oman, a lack of rivers meant that the treatment of sewage water was paramount. Kubota thus used its submerged membrane technology to contribute to the construction of the Middle East's largest sewage treatment facility. In Qatar, which is largely made up of dry land, securing a stable supply of water had been a concern—more than 500 km of Kubota's ductile iron pipes now span the country.
In 2011, Kubota supported reconstruction and recovery efforts following the Great East Japan earthquake and the Thailand floods. Its construction equipment helped to remove debris, and its mobile pumps helped to drain water.
Infrastructure renewals, disaster preparedness, and facility upgrades are equally important in advanced regions such as Europe, the US, and Japan. In 2010, Kubota developed GENEX, a series of earthquake-resistant water pipes, and in turn contributed to the construction of disaster-ready infrastructure. In the US, GENEX water pipes were installed in Los Angeles, and in Canton, where Kubota was already working on a water reclamation facility, the company opened the Kubota Water and Environment R&D Center.
In Japan, Kubota is held in such high regard that its treatment equipment is installed in more than 80% of the country's advanced water purification facilities. To solve issues relating to the ineffective maintenance and management of the country's water facilities, Kubota began offering KSIS (Kubota Smart Infrastructure System), a new water environment support service using IoT-based remote monitoring and diagnostic technologies.
Through its environment business, Kubota is aiming to build a recycling-based society. In 2018, the company joined a waste treatment project in Futaba Town, Fukushima Prefecture, which is helping the area recover from the Great East Japan earthquake of 2011. In this way, Kubota technologies are playing active roles in various locations.
In 2015, Kubota constructed a water treatment facility in Myanmar's large-scale special economic zone.
2020s
2020
130 Years of Support for the Future of Humanity
A Platform Provider Supporting Life
In 2020, Kubota reached the 130th anniversary of the company’s founding. That year, however, was one of turmoil, as the global COVID-19 pandemic plunged the world into unexpected crisis. Death tolls and lockdowns resulted in drastic changes to economies and livelihoods as the disease spread faster than any other in human history.
Coincidentally, our company was founded in the heady days of Japan’s modernization, when Gonshiro Kubota became the first to successfully produce water pipes in Japan, thus helping the effort to eradicate cholera.
COVID-19 has been a reminder of the importance not only of Kubota’s water-related operations, but also of the many other enterprises the company has been consistently engaged in. Every one of these accumulated businesses in food, water, and the environment is a source of products and services essential to people’s lives. As such, ensuring their continuity in all situations is part of our duty of care and support to society.
Now, in 2021, we are embarking on GMB2030, our vision for where we want to be in ten years. GMB2030 sets out our commitment as a “platform provider supporting life” to helping boost prosperity throughout society and to protecting the cycle of nature; and guides us on our quest to develop and apply new solutions in three categories:
- Solutions to enhance the productivity and safety of food;
- Solutions to promote the circulation water resources and waste; and
- Solutions to improve urban and living environments.
As we set out on our 131st year, our business spans over 120 countries and comprises more than 180 companies, with a workforce of over 40,000 enthusiastic contributors to local efforts to help their communities overcome challenges.
Our efforts over the past 30 years to leverage Kubota’s businesses in food, water, and the environment to identify and surmount the issues facing our many communities have resulted in growth on a global scale.
As the world continues to grapple with increasingly complex and interconnected issues such as climate change, global warming, natural disasters, and infectious diseases, our mission as a platform provider supporting life is to keep seeking solutions, regardless of the difficulties this may involve.
We are committed to harnessing the full range of technologies and insights amassed over 130 years in businesses concerning food, water and the environment, and innovating for the betterment of the world’s people.