Groundbreaking Ceremony of the Indonesian Factory

Friday October 22, 2010

This is to notify that Sumitomo (S.H.I.) Construction Machinery Co., Ltd. (President: Kensuke Shimizu; Headquarters: Shinagawa, Tokyo; hereinafter referred to as “SHI Construction Machinery'” or “the Company”) held a groundbreaking ceremony for the construction of its Indonesian factory. The ceremony was held on Thursday October 14, at the planned construction site in Karawang Industrial Park, West Java Province, Indonesia, with the participation of about 50 people.

The Indonesian factory will be the Company’s third factory, next to Japan and China. A 100,000 square meter site has already been acquired, with the aim to open a factory on the site in September 2011, with a yearly production capability of 1000 units. The Company has left extra space for subsequent expansion, should it be deemed necessary to enhance production after examining the trends of the Southeast Asian market.

In December, the Company also plans to establish a general sales company in Jakarta, Indonesia that will handle both sales of SHI Construction Machinery’s products and after-sales service in Southeast Asia. The general sales company will sell imported products, produced in both the Indonesian factory and the Chiba factory, through domestic retailers in the Southeast Asian region.

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