Strengthening Agricultural Machinery Business in Philippines Making the locally incorporated company in the Philippines a subsidiary by acquiring its shares
July 22, 2011
Kubota Corporation decided to raise its investment ratio in the locally incorporated company Kubota Agro-industrial Machinery Philippines, Inc. (hereinafter "KAMPI") to 85% from 15% by acquiring the outstanding shares and make it a subsidiary . In connection with this, KAMPI's name will be changed to Kubota Philippines, Inc. (hereinafter "KPI").
1. Profile of new company
| Company name | Kubota Philippines, Inc. (hereinafter "KPI")
|
|---|---|
| Location | Quezon City, Metro Manila, Philippines |
| Capital | 100 million peso (200 million yen at the exchange rate of 2 yen to 1 peso) |
| Investment form | Marubeni 15%, Kubota 85% |
| President | Koji Okaze |
| Business | Sales of tractors, combine harvesters, rice transplanters, implements, and horizontal diesel engines etc. in the Philippines |
| Sales target | 5 billion yen in 2015 |
| Business | Production of hydraulic cylinders for tractors |
| Number of employees | About 40 |
2. Background to and aim of establishing new company
- The Philippines is the eighth-largest rice producer in the world, but rice has been produced mainly by hand there. The country's self-sufficiency ratio of rice is 80% and the remaining 20% is imported. The Philippines is also the world largest rice importer. In future, as economic development in the Philippines advances, there will be needs for the mechanization of farm work, and the agricultural machinery market is expected to expand.
- Preparing to expand the market of agricultural machinery in the future, Kubota Corporation raised its investment ratio in KAMPI in the Philippines to 85% from 15% and took the initiative in management. It will promote business expansion.
- Making use of the acquired R&D capabilities and know-how regarding how to formulate sales routes and service systems, Kubota Corporation will build a total agricultural machine business, including not only horizontal diesel engines and cultivators sold by KAMPI, but also combine harvesters, tractors and rice transplanters. It will contribute to agricultural mechanization in the Philippines.
Map of Bases in Philippines
Reference
Profile of KAMPI
| Company name | Kubota Agro-industrial Machinery Philippines, Inc. |
|---|---|
| Established | October 1987 |
| Location | Quezon City, Metro Manila, Philippines |
| Capital | 100 million peso (200 million yen at the exchange rate of 2 yen to 1 peso) |
| Investment ratio | Local shareholder 70%, Marubeni 15%, Kubota 15% |
| President | W. G. Tirona |