Machinery / Industrial Parts & Tools

World trade has experienced various shocks over the past few years, prompting Kubota to rethink its global manufacturing strategy. It is reported that the company has decided to invest $2.2 billion to build new factories in the United States, India and elsewhere by 2030.

Kubota aims to keep half of its equipment production outside Japan, up from 30% currently, due to growing global supply chain disruptions and rising freight costs. The investment program also aims to reduce the impact of currency exchange rates.

Increase production base

The company already has a U.S. production base and appears to be looking to expand capacity at the Indian Escort tractor it acquired earlier this year.

Kubota has just announced the acquisition of Italian manufacturer Officine BIEFFEBI (BFB) and its subsidiary Gianni Ferrari (GF), a move that could be seen as part of the plan.

Acquisition of Italian company

The aim is to merge the two into a new wholly-owned subsidiary of Kubota Holdings Ltd., Kubota's agricultural machinery business subsidiary in Europe. The new company underscores Kubota's determination to expand beyond Japan and the United States.

This is the second Italian company that Kubota has recently invested in. Last fall, it acquired a majority stake in ROC. ROC was established in 1996 to provide agricultural equipment and equipment for feed dehydration plants, biomass and biogas production plants, and large-scale farms for the production of hay, silage and straw.

Kubota explores alternative fuels

Despite some difficulties, Kubota continues to develop its own product line. Rumors surfaced last month that Kubota could launch a hydrogen-powered tractor by 2025, and the company admits it is working on the concept but has no plans to bring it to market yet.

The tractor uses a more efficient fuel cell rather than relying on combustion to release the energy potential of the gas. This may push the lead-in cable to drive the tractor faster than it is driven by shafts, belts and chains.