Takeuchi has agreed to purchase the former KOBELCO plant in Moore, South Carolina, for $34.35 million.
Nikkei Asia reports that Takeuchi expects the deal to boost its production capacity for the U.S. market by about 40 percent.
It plans to begin manufacturing compact track loaders at the plant by the end of the year.
“Takeuchi has experienced its greatest demand for compact track loaders right here in North America,” said Jeff Stewart, president of Takeuchi-US, in a prepared statement. “That’s why manufacturing these highly sought-after machines right here in the U.S. simply makes sense. It will be faster and more efficient than shipping them from one of our overseas manufacturing facilities, and we can then pass on those efficiencies to our dealers and their customers.
“We truly feel like this is a big step for Takeuchi,” Stewart said. “Bringing some of our manufacturing to the Southeastern United States demonstrates our dedication to the North American market and this region we call home. We’re very proud and excited to launch this new adventure, and we know it will generate significant benefits for our company, and more importantly, our customers.”
The company also plans to continue production in Japan even after the South Carolina plant starts production. Takeuchi will carry out up to 70 percent of the production process in Japan and complete the work in the U.S. for faster deliveries to its biggest market, Nikkei Asia says.
You can read the rest of the Nikkei report here.
A KOBELCO spokesman confirmed to Construction Equipment the excavator maker had idled the plant after its Hino engines failed to meet current EPA certification.
After re-entering the North American market in 2013, KOBELCO brought the South Carolina facility online in January 2015. Operations had been suspended since May of last year.
Source: Nikkei Asia
