Sumitomo Construction Machinery - Expanding exports

Reports indicate that Sumitomo (S.H.I.) Construction Machinery Co. is expanding its exports of hydraulic excavators. The expansion is intended to keep pace with sales in Europe, the U.S. and China. In Europe, CNH Global NV is expanding its distributor network and has increased the number of units imported finm Sumitomo by 40 percent to 1400 last year, and expects the same growth rate this fiscal year.

Sumitomo Heavy Industries Ltd.’s U.S. sales subsidiary, Link-Belt Construction Equipment Co., is also expanding its distributor network and in spite of the 35 percent decline to 700 units due to inventory reduction, shipments have exceeded expectations. Exports to China are expected to double to 500 units this fiscal year. Since April, hydraulic excavator exports have been growing at a 40 percent annual rate. In 2002, Sumitomo Construction Machinery expects to export at least 3000 units, 20 percent more than the previous year. The company makes all of the exported equipment at its Chiba, Japan, factory.