TOKYO -- Yanmar Holdings is planning a record 50 billion yen ($465 million) in capital spending in the year ending March 2017, a 30% increase from the year before.
Yanmar will enlarge a new-energy test wing at its Central Research Institute in Maibara, Shiga Prefecture, which develops a wide range of products. The company will build performance testing facilities for small construction equipment in Chikugo, Fukuoka Prefecture, where it has a construction machinery plant.
At its Biwa Plant -- Yanmar's main manufacturing site -- more production facilities will be added for small diesel engines used for in-home power generation systems and construction machinery. The move comes in response to strong inquiries from customers in Japan and abroad. Yanmar last fiscal year added employees, and will spend some capital on cultivating human resources.
As part of a plan to boost group sales from just over 703.8 billion yen last fiscal year to 1.2 trillion yen in the year ending March 2021, the company is hurrying to expand businesses at home and abroad through aggressive capital spending.