Kobelco, Toyota Tsusho to form joint venture to produce excavators

Kobelco Construction Machinery and Toyota Tsusho, a trading firm in the Toyota Motor group, said last week they will form a joint venture in October to manufacture hydraulic excavators in China, the Japan Economic Newswire reported. The two companies said the joint venture will help meet China’s growing construction equipment demand, which is being fueled by preparations for the 2008 Olympics in Beijing. Kobelco will own 87 percent of the new firm — Kobelco Toyota Tsusho Construction Machinery Holding Asia — and Toyota Tsusho will own 13 percent. The stakes will be altered to 65 percent and 35 percent, respectively, in 2005.