Great Plains Manufacturing Inc. (GPM), a U.S. subsidiary of Kubota, is planning to set up a new plant for Compact Track Loaders (CTLs) in Salina, Kansas, US, to start mass production in 2022. By establishing this new production facility and thereby enhancing capacity to quickly respond to the customers’ requests, Kubota aims to further expand its business in the area of compact construction machinery.
The 74,000 square meter facility which will be constructed on 647,000 square meters of land, will cost approximately US $53m. It will have the capacity to produce 3,000 units annually by 2023 and will generate 120 employment opportunities.
Compact construction machinery market in North America
North America represents the world’s largest market for compact construction machinery, and Kubota has been working in recent years to expand its business there by reinforcing its sales network and enhancing its product lineup.
Currently, compact construction machinery for North America are mostly produced in Japan. Producing such machinery in the United State, where they are consumed, will enable the company to reduce the lead time and mitigate the foreign exchange risk. In addition, the company aim to achieve enhanced compatibility with attachments by having construction machinery produced by GPM.