Suspension of Production at the U.S. excavator plant
Kobelco Construction Machinery Co., Ltd. (or KCM) has decided to temporarily suspend the production of hydraulic excavators at the U.S. plant of its U.S. subsidiary Kobelco Construction Machinery U.S.A. Inc. (or KCMU) in Spartanburg County, South Carolina, USA, from May 1, 2021.
1. Reasons for the Suspension
In the middle of January 2021, We have been told by Hino Motors, Ltd. that there has been a delay in the acquisition of certification for new model year engines*1 to be supplied for KCMU's hydraulic excavators for the North American market, due to a problem in the process of achieving EPA emission certifications, with no clear outlook on future supply schedule.
After receiving this notice, we have been examining the impact on production and alternate solutions, but we have judged that the production of hydraulic excavators equipped with the relevant engines*2 would be difficult and decided to suspend the production at the KCMU's Spartanburg plant.
*1 The engines need to meet EPA emission certifications for 2021
*2 Engine models: J05E, J08E, P11C and E13C
2. Details of the Production Suspension
The production of the following 7 models of hydraulic excavators, which is produced at and shipped from the KCMU's Spartanburg plant, will be subject to be suspended. For hydraulic excavators equipped with certified engines, sales will be suspended once the present stock has run out.
Models Produced in the U.S.
Hydraulic excavators: SK170LC, SK210LC, SK260LC, SK300LC, SK350LC, SK390LC and SK500LC
The engines that are undergoing the certification process are also used in some models manufactured in Japan and supplied to the North American market, which include hydraulic excavators (produced at KCM's Itsukaichi factory) and crawler cranes (produced at KCM's Okubo factory). Therefore, the production of the following models will also have to be temporarily suspended once the present stock of certified engines has run out.
Models affected in Japan (for North America)
Hydraulic excavators: SK210HLC, SK230SRLC, SK270SRLC, SK380SRLC, SK500LC and SK850LCCrawler cranes : CK850G, CK1100G, CK1200G, CK1600G and CK2750G
We will suspend the production at the KCMU's Spartanburg plant from May 1, 2021 until the supply of the engines is resumed (date undetermined).
4. Future outlook
We are currently scrutinizing the impact of the suspension of the production and sale on our business results. We will promptly make an announcement when any matters to be disclosed arise in the future.
During the suspension of the production, we will continue the business in the North America, including the sales of models other than those subject to this suspension (various mini-excavators, 7ton/13ton class hydraulic excavators and the crawler crane CK3300G) and after-sales service for machines already delivered. We are considering installing an alternative engine for the models affected by this supply disruption. We strive to resolve this issue as soon as possible.