Realignment of home production structure to raise production capacities at Tadano's manufacturing plants in Japan

In the light of an increasing demand for cranes at a steady pace in both domestic and overseas markets, we judged it necessary to refurbish our existing plants with a new installation of manufacturing facilities, and therefore decided to invest in such projects some 7.5 billion yen during the four years from 2005 to 2008 to establish a new production structure which will allow a 30% or more increase in overall production volumes focused on mainstay construction cranes at the end of the projected four years.

1. Outline of realignment of home production structure
We aim to have a full line of construction cranes produced intensively at the Shido Plant, aerial platforms at the Takamatsu Plant and truck loader cranes at the Tadotsu Plant (owned by Shikoku Kiko K.K., a manufacturing subsidiary of Tadano Ltd., currently producing components of mobile cranes and truck loader cranes).

The realignment of the production structure as well as the transfer of production is being carried out gradually so as not to disturb routine operations at each of the plants targeting the end of 2008 for its completion

Shido Plant
Primary investments:
To build a manufacturing structure to raise production volumes of rough terrain cranes
To install assembly lines for truck crane carriers
To build a manufacturing structure to raise production volumes of booms and cylinders
Upkeep and renewal of other equipment

Activities after realignment:
Manufacture of construction cranes
Mass production of booms and cylinders for construction cranes (including those destined for Faun GmbH, a German subsidiary of Tadano)

Takamatsu Plant
Primary investments:
To build a manufacturing structure to raise production volumes of aerial platforms
Expansion of the Parts Center Upkeep and renewal of other equipment

Activities after realignment:
Manufacture of aerial platforms

Tadotsu Plant
Primary investments:
To set up manufacturing lines for truck loader cranes
Construction of a new factory building*
Upkeep and renewal of other equipment

Activities after realignment:
Manufacture of truck loader cranes

*A new factory building to be constructed on the current premises will be two-storied with steel-frame construction to cover the total floor space of approximately 18,000m2. The construction costs are estimated at approximately 1.3 billion yen. Construction is scheduled to start in April, 2006 and complete in January, 2007.

2. Plant and equipment investments
The total investments as the Tadano group amount to some 7.5 billion yen for the four years from 2005 to 2008, out of which approximately 4.0 billion yen is accounted for the costs of upkeep and renewal of other equipment.

3. Raising of funds, performance outlook, etc.
The costs required for the investment in plant and equipment above will be covered mainly by our own funds and partly by the subsidiary concerned. The costs related to this fiscal year have already been counted in the performance prospect, which will therefore have little influence upon the projected business results for the said year.

• Outline of three plants of TADANO (PDF:534KB)