Kubota Corporation (Headquarters: Naniwa-ku, Osaka, Japan; President and Representative Director; Yuichi Kitao; hereinafter “Kubota”) and Sumitomo Construction Machinery Co., Ltd. (Head Office: Shinagawa-ku, Tokyo, Japan; President and CEO: Yasunobu Kazumi; hereinafter “Sumitomo Construction Machinery”) hereby announce that the two companies have initiated talks on the specifics of supply of construction machinery on an OEM basis.

1. Background and objectives

• In countries around the world, the growing demand for housing due to population growth, the expected increase in construction work as a result of infrastructure investment and urban development, and the rising labor shortage at construction sites, demand for construction machinery is expected to remain robust to improve work efficiency and achieve human power saving.
• Both Kubota and Sumitomo Construction Machinery engage in the development, manufacturing, and sales of construction machinery, with the former specializing in compact construction machinery designed for construction work in urban areas, and the latter in medium- and large-size construction machinery for a broad range of applications, including civil engineering work and forestry. The two companies derive their strength from the capabilities to develop technologies for lower fuel consumption, high operability, and other distinct product specifications, as well as from ICT-enabled solutions for their products.
• Meanwhile, construction machinery of varying sizes is in demand at construction sites and other places. Both companies share the problem that their current product line may not adequately meet such customer needs, making it one of the most important management issues to increase the variety of their offerings.
• This being the case, Kubota and Sumitomo Construction Machinery have agreed to initiate talks on the specifics of supplying products on an OEM basis to further leverage each other’s strengths to better cater to customer needs.

2. Specifics of the talks

• Kubota will consider sourcing 14t hydraulic excavators from Sumitomo Construction Machinery, which are frequently used at construction sites in urban areas and are in high demand among customers outside of Japan.
• Sumitomo Construction Machinery will consider sourcing compact models from Kubota for overseas markets.

3. About Kubota and Sumitomo Construction Machinery

Company name	Kubota Corporation	Sumitomo Construction Machinery Co., Ltd.
Representative	Yuichi Kitao, President and Representative Director	Yasunobu Kazumi, President and CEO
Head Office	Naniwa-ku, Osaka, Japan	Shinagawa-ku, Tokyo, Japan
Establishment	1890	1963
Consolidated sales	2,678.8 billion yen (Group) 506.5 billion yen (Construction Machinery business) (Fiscal year ended December 31, 2022)	341.4 billion yen (Logistics& Construction segment of Sumitomo Heavy Industries, Ltd.) 210.7 billion yen (Sumitomo Construction Machinery Group) (Fiscal year ended March 31, 2021*)
Number of employees (Consolidated)	50,352(as of December 31, 2022)	2,803(as of December 31, 2022)

• Consolidated sales for Sumitomo Construction Machinery Co., Ltd. are for their fiscal year ended March 31, 2022, as they changed their fiscal year end from March 31 to December 31 of every year in 2022.

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