Japan Construction Machinery Shipments May Rise 9%
Tuesday, February 19th, 2008Japan’s shipments of construction machinery may rise 9 percent to a third straight annual record next fiscal year as building and mining booms in Asia drive demand for earthmovers built by Komatsu Ltd. and its rivals.
Shipments of excavators, tractors, cranes and other construction machinery may climb to 2.6 trillion yen ($24 billion) in the year starting April 1, according to estimates released by the Tokyo-based Japan Construction Equipment Manufacturers Association today. Shipments in the year ending March 31 may reach 2.4 trillion yen, 15 percent more than the previous year.
China’s effort to develop its hinterland, oil-funded construction booms in Russia and the Gulf nations, and mining projects in Southeast Asia have countered the housing recession in the U.S., the world’s biggest market for earthmoving equipment. The demand has prompted Komatsu and Hitachi Construction Machinery Co., Japan’s biggest makers of earthmoving machinery, to expand factories and boost production.
“There hasn’t been any change in the strength of demand from emerging markets,” Hiroo Shimada, chairman of the association, said today at a press conference in Tokyo. “We will allocate a shortfall in demand from North America to growing markets.” Shimada is also chief executive officer of Kobe Steel Ltd.’s Kobelco Construction Machinery Co. unit.
China, Russia
Exports may advance 12 percent to 1.8 trillion yen next fiscal year, as China, Russia and the Middle East make up for a 5 to 10 percent decline in demand from North America, Shimada said. Domestic shipments may increase 2 percent to 806.5 billion yen.
The group represents 76 companies, including Shin Caterpillar Mitsubishi Ltd., a venture between Peoria, Illinois- based Caterpillar Inc. and Mitsubishi Heavy Industries Ltd., and Kubota Corp., the world’s biggest maker of mini-excavators.
Worldwide demand for excavators, used in civil engineering works and mining, may grow 9 percent to about 215,000 units in the year starting April, helped by demand from emerging markets, according to an estimate by Tokyo-based Hitachi Construction, the world’s biggest maker of giant excavators.
Tags: Construction machinery
