Siam Cement Group (SCG) and Kubota Corporation Japan, a world leader in agricultural equipment, have formed Siam Kubota Corp by combining Siam Kubota Industry and Siam Kubota Tractors.
"We see much potential for growth in the local market," Yasuo Masumoto, president, chief executive officer and representative director of Kubota Corporation Japan, said yesterday.
"We plan for our new company to become the centre for full-line agricultural machinery business in Asia. This means not only business expansion for Kubota Japan but also export opportunities for Siam Kubota, especially to the regional market," he said.
Siam Kubota Industry was Thailand's first manufacturer of small diesel engines for agricultural use and the leader in farm equipment, while Siam Kubota Tractors was Asia's first tractor manufacturer outside Japan.
Siam Kubota Corp starts its new life with registered capital of Bt3.11 billion. Kubota holds 60 per cent and SCG the rest.
"Under Kubota's 120th-anniversary slogan, 'For Earth, for life', the start-up is also positioned as a model for efficient operation and a centre for developing other lines of Kubota's business in Asia such as system and solution development for food, water and environmental problems," Masumoto said.
Kan Trakulhoon, president and CEO of SCG, said that with joint investment of Bt2.7 billion and a clear direction for Kubota to drive the Asian agricultural machinery market, Siam Kubota Corp was all set to manufacture 10,000 combine harvesters.
"Along the way, we can learn from our Japanese partner the art and science of developing world-class products and processes for the benefit of the Thai agricultural sector," he said.
SCG and Kubota forged their relationship 32 years ago. In the past five years, they have put together more than Bt11 billion in investment.
"This positive trend is contributing to increasing productivity and a better quality of life for Thai farmers. The establishment of Siam Kubota accentuates our continued cooperation and commitment to the growth of the agricultural-machinery business in Thailand," Kan said.
Seen in photo: Yasuo Masumoto, second left, president, CEO and representative director of Kubota Corporation Japan, shakes hands with Kan Trakulhoon, president and CEO of Siam Cement Group, at yesterday's launch of Siam Kubota and new joint investment of Bt2.7 billion, to strengthen their 32year relationship.