Kobelco forms second excavator joint venture in China

Kobelco Construction Machinery and Toyota Tsusho announced Jan. 22 the formation of their joint venture, Hangzhou Kobelco, which will manufacture Kobelco-brand hydraulic excavators in Zhejiang Province, China. The joint venture is slated to begin operation in March 2005 at a new facility employing 320 people. Kobelco has a 51-percent share in the joint venture, while Toyota Tsusho holds a 27-percent share and Chengdu Jialixing Investment holds a 22-percent share. Hangzhou Kobelco is expected to have a manufacturing capacity of 3,500 units per year by 2007. The joint venture will operate Kobleco’s second production facility for excavators in China. Chengdu Kobelco, located in Sichuan Province, is producing 3,500 units per year.