Japanese Machinery Company to Build US Factory

file9741274213396Perhaps you have a noticed a brand of an excavator from Japanese manufacturer the Kobelco Construction Machinery Company. If you have not noticed it, then that is probably normal. The company, which used to control a 10% market share in North America before leaving the market in 2002, has only returned to selling their excavators (as well as parts and services) in the US again since 2013. Currently, they only control 4% of the market share in the US. While the Kobelco Construction Machinery Company would love to increase their market share into the US for excavators, they are running into a big problem: international shipping. It turns out that in order for the Kobelco Construction Machinery Company to sell their excavators in the US, they have to ship them on a Ro-Ro vessel (Roll-On/Roll-off) from Japan. This takes a long a time for the shipping, and the heavy machinery shipping rates are adding up.

That is why the Kobelco Construction Machinery Company recently announced that they are building a new factory in the US. The factory, in South Carolina, will produce approximately 1800 excavators annually, including machines of different sizes. The plant will be built in a few months and be fully operational by 2016. Over 100 workers will be hired at the plant to build these machines for sale. Freight forwarders will assist them in the domestic transportation of the excavators throughout North America. The Kobelco Construction Machinery Company hopes to increase their market share in 2016 with the opening of their new factory (a $41 million investment) in South Carolina.

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