Agricultural machinery in our country after 10 years of golden development period, may significantly increased, but some distance of agricultural mechanization in developed countries there is a distance, China's agricultural machinery market potential is tremendous, attracted many foreign companies.
Kubota, a Japanese agricultural machinery maker, plans to increase production in China around autumn 2017. Kubota plans to invest about 6 billion yen in a new factory in suzhou, jiangsu province, doubling the annual capacity of its main tractors to 10,000 units. Despite China's economic slowdown, the government has offered farmers generous subsidies to buy farm machinery to raise living standards in the countryside. Kubotian will use convenient, quality assurance of small and medium - sized agricultural machinery as weapons, to speed up the development of the growth market.
The company will set up a new factory near the farm machinery plant in suzhou city. The plant is expected to cover an area of about 30,000 square meters and will begin construction in the fall of 2016. Farm machines produced in nearby rental factories will be concentrated in their own factories.
In addition, the production will be increased combine harvester. Mainly used to harvest wheat and corn, it plans to increase its annual production capacity by more than 20% to 45,000 units.
Some of the processes outsourced to other companies, such as painting, will also be moved to new factories to improve production efficiency. Engines will be bought from China and Japan's own factories. Further capacity building will be discussed in the future.
In order to expand agricultural production, the Chinese government provides farmers with subsidies equivalent to 20-30% of the price of agricultural machinery when they buy agricultural machinery. The Chinese government has offered to continue to maintain the principle of the system, according to the industry, China's agricultural machinery market size by 2023 will reach about 7 trillion yen, widened to 2013 more than 2 times (about 3 trillion yen).
At present, local agricultural machinery manufacturers in China mainly sell low-priced small tractors and so on. On the other hand, big agricultural machinery companies such as Deere in the United States have an advantage in producing large agricultural machinery. Kubaata mainly produces small and medium-sized agricultural machines, and a small tractor costs about 2 million to 4 million yen. It is said that although the price is higher than that of local manufacturers, it is easier to use and better in quality.
Kubota has a more detailed distribution network than overseas agricultural machinery makers such as Deere of the United States and mahindra of India, which sells small and medium-sized agricultural machinery. Therefore, we will publicize our perfect after-sales service and actively promote it to local farmers.
While strengthening the production system, it will also expand its sales outlets. It will expand the number of stores centered on coastal rice growing areas to areas such as shandong and hebei provinces, and increase the number of stores from about 900 now to 1,200 by 2018. We will strive to raise the sales volume of agricultural machinery in China to about 100 billion yen as soon as possible, from an estimated 70 billion yen in 2016.
The Japanese company also plans to open a new factory in China in November 2016 through a joint venture with China's dongfeng motor group.
In order to adapt to the needs of market development, melt into the tide of China's economic construction, ChengGong, Import & Export co, LTD, processing customized production machinery parts by major market in China, the Beijing and tianjin, east China, southwest and other regions to establish brand reputation, gear, bearing, oil seal high-quality accessories are exported to all over the world. Through our efforts, kubotian accessories brand, excellent quality, thoughtful service and perfect spare parts supply, has won the recognition and praise of users in various regions.