Investment in the US and India

Kubota is a Japanese multinational corporation based in Osaka. The corporation produces many products including tractors and other agricultural machinery, construction equipment, engines, vending machines, pipe and valves. Also, the Japanese company manufactures cast metal, pumps, and equipment for water purification, sewage treatment and air conditioning.

The Japanese company made a decision to invest 300 bn JPY to establish new factories in the US and India. The new facilities will manufacture agricultural machinery and construction equipment. As a result, the company wants to increase the ratio that manufacture products overseas from 30% to 50%. The company has already earned money by more than 70% outside Japan. As we see the numbers, it manufactures products in Japan and export them. However, the company wants to realize decentralized manufacturing.

For example, the Japanese multinational company is planning to build a new factory in India by 2026. It will manufacture tractors and they will be cheaper than the current ones. Therefore, we must see decentralized manufacturing can be a new trend in the manufacturing industry?

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