Kobelco launches construction machinery plant in China
Kobelco Construction Machinery Company, a group company of Japanese Kobe Steel Ltd., announced the formal start of production of hydraulic excavators at its joint venture Hangzhou Kobelco Construction Machinery Company in Hangzhou, Zhejiang Province, China. The joint venture has a production capacity of 1'500 excavators per year. Hangzhou Kobelco is 51% owned by Kobe Steel, 27% by Toyota Tsusho Corporation, and 22% by Chinese Chengdu Jialixing Investment Company. Hangzhou Kobelco supplies excavators in the Chinese market, particularly in eastern China. Owing to its location on the coast, Hangzhou Kobelco also exports excavators to Southeast Asia. The potential demand for construction machinery in China is high due to numerous large construction projects, including the Beijing Olympics in 2008 and the Shanghai Expo in 2010.