News Release

YANMAR and Kobelco to Expand OEM Supply of Mini Excavators

July 18, 2014
Yanmar Co., Ltd.

YANMAR and Kobelco to Expand OEM Supply of Mini Excavators

YANMAR Construction Equipment Co., Ltd. ("YANMAR") and Kobelco Construction Machinery Co., Ltd. (“Kobelco”) have reached an agreement on the expansion of OEM supply of mini excavators.

1. Agreement Details 

1) YANMAR will expand OEM supply of mini excavators to Kobelco
Currently YANMAR offers 0.5 and 0.8 ton-class mini excavators to Kobelco in Japan. The sales area and models will be expanded as described below:
1. OEM Area
Current: Japan
New: Worldwide
 2. OEM Models (Available models may vary depending on sales area)
Current Standard models: 1 model in the 0.5 ton and 0.8 ton classes
New Zero Tail Swing models: 1 model in the 1.0 ton,1.7 ton, 2.0 ton and 2.5 ton classes
New Standard models: 1 model in the 0.5 ton, 0.8 ton, 1.6 ton, 1.8 ton, 2.2 ton and 2.6 ton classes
3. Start of New OEM Supply
North America, South Korea and Oceania: Tentatively planned for January 2015
Europe and Japan: Tentatively planned for April 2015
Other areas are under consideration

2) Kobelco will begin OEM supply of mini-excavators to YANMAR
Kobelco will begin OEM supply of 2.0 to 5.0 ton class Ultra-Tight Turning mini excavators to YANMAR.
1. OEM Area
2. OEM Models
Ultra-Tight Turning models: 1 model in the 2.0 ton, 3.0 ton, 3.8 ton and 5.0 ton classes
3. Start of OEM Supply: Tentatively planned for Summer 2015 

2. Aims of Expanded OEM Supply

By dividing development and production operations between the two companies, both can better focus on their respective areas of expertise to ensure greater profitability. Sales of Ultra-Tight Turning mini excavator models are not expected to grow internationally, but there is a demand domestically in Japan. By utilizing OEM models for the 4.0 and 5.0 ton classes that must adhere to gas emission regulations, development costs and man-hours can be reduced. In addition, the expansion in OEM supply of 2.5 ton and under models will boost production, leading to a faster return on development investment and to a reduction in production costs.

Note: Information contained in News Releases is valid at the time of publication and may differ from the most recently available information.

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