In January 2013, Kubota Corporation announced plans to set up a new base in China to focus on vertical type diesel engine production for its products as well as those of other companies. This expansion will increase its production capacity, allowing it to meet growing demands in Asia and beyond. Kubota Corporation plans to expand its business by diversifying its products to include engines, transmissions and other parts. Here are a few reasons why this is an important move for the company.
Agricultural Equipment manufacturers compete based on equipment quality and promotion
Agricultural Equipment manufacturers in China are primarily competing based on equipment quality and promotion. Some companies are expanding their product lines and launching new products. Others are expanding their dealer networks and focusing on dealer support and customer service. Chinese companies that have made a name for themselves in the agricultural equipment industry include John Deere, AGCO, First Tractor Company Limited, Kubota, and Zhongtai.
The Group is the largest producer of agricultural equipment in the world, and the flag bearer of the industry. Its high-tech equipment helps farmers to meet the rising demand for commodities. Another popular manufacturer is the Group, which was started in 1913 by August. Its agricultural equipment is renowned world-wide for its quality and innovation. Its innovative products have won numerous awards, including the prestigious World Agri-Tech Award.In mid-century, Case, IH, and Ford represented 55% of the market. Other major players included Massey-Ferguson, Oliver, and Deere,and each had a share of just over 14 percent. The industry continued to see periods of growth and contraction. The manufacturers and dealers responded by focusing on new business opportunities and improving the efficiency of their operations. Many manufacturers expanded their product offerings through acquisitions, completing their lineups with new models.
Chinese Agricultural Equipment companies establish new bases in China
A new wave of agricultural machinery manufacturers is establishing new manufacturing bases in China. Leading global manufacturers such as CNH Industrial and Case are expanding their presence in the region. CNH, a leading international agricultural equipment manufacturer, believes that the China market offers enormous revenue potential. As a result, it will continue introducing advanced technologies and high-quality service to Chinese customers. The Chinese government plans to use these new bases to further mechanize the agricultural industry.
The new manufacturing base in China will create a hub for exporting agricultural equipment. Chinese companies can build their factories in the country to produce high-quality equipment and sell them worldwide. Chinese companies are already investing millions in developing agricultural equipment manufacturing technology in the region, and the opportunities are enormous. The government's support for these companies is one reason why so many companies are establishing bases in the country. They are seeking to increase their sales to meet growing domestic demand for agricultural equipment and services.John Deere, CNH Industrial, AGCO, Kubota and have already established new manufacturing bases in China. In the long run, the Chinese market will be worth $50 billion and Chinese agricultural equipment manufacturers will be well positioned to benefit from it. A key reason for this is the shrinking farm labour force and increasing plot sizes. These factors are also helping to offset weaker sales in North America and Europe, where commodity prices are declining.
Kubota plans to establish an optimal global production system Kubota Corporation expands its partnership with Land Pride by entering into a definitive agreement to purchase Great Plains
Manufacturing, Inc. headquartered in Salina, Kansas. This acquisition includes five divisions in Kansas and several manufacturing facilities in England. This agreement will increase the scope of Kubota's operations in the United States. During the 2020 financial year, Kubota expects to generate revenue of more than $1.85 billion yen.
To achieve this goal, Kubota is planning to combine advanced technology with the use of data and automation to create an optimized global production system. The company is focusing on developing a cloud-based agricultural management support system (KSAS) that connects Kubota tractors, rice-transplanters, combine harvesters, and other agricultural equipment to ICT. It is currently working on more than 6,000 farms to implement this system.
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