News Release
May 10, 2010
Sumitomo Heavy Industries, Ltd.
Sumitomo (S.H.I.) Construction Machinery Co., Ltd.
Notice Regarding the Expansion of Sumitomo (S.H.I.) Construction Machinery Co., Ltd.’sBusiness in the ASEAN Region
Sumitomo (S.H.I.) Construction Machinery Co., Ltd. (Head Office: Shinagawa-ku, Tokyo;
President and CEO: Kensuke Shimizu; hereinafter referred to as “SHI Construction Machinery” or
the “Company”), a wholly-owned subsidiary of Sumitomo Heavy Industries, Ltd., announced
today that it will be building a plant in Indonesia to act as the construction machinerymanufacturing center hub for the ASEAN region. Until now, SHI Construction Machinery has
been globally distributing its products from two existing plants located in Chiba, Japan andTangshan, China. However, due to the shift in demand for construction machinery from developed
to emerging markets, the Company was considering the development of a third plant in theASEAN region. The decision to set up a locally incorporated company and to construct a plant inIndonesia was made primarily because Indonesia exhibits the highest demand for construction
machinery within the ASEAN countries. The details of the new plant are as follows:
Details of the Announcement
1. Profile of Company to be Established(1)

Company Name

(2)
(3)
(4)

Location
CapitalShareholders

(5)
(6)
(7)
(8)
(9)

Date of Establishment
Land Area
Number of Employees
Date of Commencement
Production Capacity(10)

Capital Investment Amount(11)

Projected Sales

PT. Sumitomo S.H.I. Construction Machinery
Indonesia
Karawang, Indonesia
USD33,000,000 (approximately JPY3,000,000,000)
Sumitomo Heavy Industries, Ltd. – 10%
Sumitomo (S.H.I.) Construction Machinery Co., Ltd.
– 90%
July 2010 (Anticipated)
Approximately 100,000m2Approximately 200
September 2011 (Anticipated)
1,000 Hydraulic Excavators on an annual basis (Fourtypes of excavators: 12 ton, 21 ton, 24 ton and 35 ton)
JPY2,350,000,000 (Land, Construction Materials,Construction, Assembly and Finishing Work, etc.)
2012: JPY4,500,000,000
2013: JPY7,700,000,000

2. Sales Conditions in the ASEAN Region and Reasons for Selecting Indonesia
At the present time, the Company exports its construction machinery products from its Chiba,
Japan plant to local dealers in the ASEAN region who in turn perform and sales and service
functions. For FY2009, the number of units sold to the region totaled 250. However, with theestablishment of this new plant, sales are anticipated to hit 1,000 units by 2014.
Indonesia is already the largest market for construction machinery in the ASEAN region at
more than 50% of the market being concentrated in the country. With a population of
200,000,000 people, growing demand for resources, and an improving infrastructure, thecountry is ripe for further expansion as it develops in the future. SHI Construction Machinery
plans to expand its business in the ASEAN region by setting up a locally incorporated
company in the country with the capacity to manufacture approximately 1,000 units that will
also carry out sales and service functions. This will allow the Company to become a stablesupply source for customers in the region and also reduce the impact of currency exchange
fluctuations on the Group’s finances.

Proposed Plant Location
Indonesia

Borneo(Kalimantan)
Sulawesi

Sumatra

PalembanJakarta

Makassar

Java
Timor
Karawang – 60km East of Jakarta City Center