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Makita (China) Co., Ltd.

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<strong>Makita</strong> (<strong>China</strong>) <strong>Co</strong>., <strong>Ltd</strong>.<br />

<strong>Makita</strong> (<strong>China</strong>) <strong>Co</strong>., <strong>Ltd</strong>.<br />

Based in Kunshan, which is 60 kilometers<br />

northwest of Shanghai, <strong>Makita</strong> (<strong>China</strong>) <strong>Co</strong>.,<br />

<strong>Ltd</strong>. (MCC), has expanded steadily since its<br />

establishment in 1993. It is currently the<br />

<strong>Makita</strong> Group’s largest overseas manufacturing<br />

base. In fiscal 2001, MCC was ranked in<br />

the top 300 among all foreign-affiliated companies<br />

in <strong>China</strong> in terms of net sales. By<br />

making good use of the abundance of highly<br />

diligent and resourceful workers in <strong>China</strong><br />

together with the <strong>Makita</strong> Group’s corporate<br />

policies and superior technologies, MCC has become a prominent<br />

example of a highly successful manufacturing operation in <strong>China</strong> by<br />

a foreign-affiliated company.<br />

MCC recorded a decline in exports to the United States in the first<br />

half of 2002 but was able to improve its performance during the latter<br />

half of the year. Reflecting a shift of manufacturing responsibilities<br />

from the United States to <strong>China</strong>, total production volume was<br />

maintained at 2.5 million units. During the fourth quarter of the<br />

year, manufacturing start-ups for a new rotary hammer series as<br />

well as the initial models of the new “Maktec” product line for Asian<br />

markets outside Japan led to growth in orders.<br />

Toshihito Yamazoe<br />

President<br />

<strong>Makita</strong> (<strong>China</strong>) <strong>Co</strong>., <strong>Ltd</strong>.<br />

Established in November 2000, <strong>Makita</strong> (Kunshan) <strong>Co</strong>., <strong>Ltd</strong>. (MKC), specializes<br />

in the assembly of products for export. <strong>Co</strong>nstruction of MKC’s<br />

first plant was begun in July 2001 and completed in March 2002. MKC<br />

will enable MCC to progressively tighten its focus on component processing.<br />

After shifting its component assembly lines to MKC, MCC will<br />

increase its component processing capacity so that it can become a<br />

principal source of components for other <strong>Makita</strong> Group factories overseas,<br />

thereby providing a solid basis for increasing the Group’s overall<br />

cost competitiveness.<br />

10 Annual Report 2002


Reports from Strategic Areas<br />

In March 2001, <strong>Makita</strong> established <strong>Makita</strong> (Shanghai) Trading <strong>Co</strong>., <strong>Ltd</strong>.<br />

(MST), to handle the export of other locally produced low-cost components<br />

and materials to the Group’s overseas manufacturing and marketing<br />

units. Based in Shanghai’s Waigaoqiao (free-trade zone), MST has<br />

been helping improve the <strong>Makita</strong> Group’s services and competitiveness<br />

since it began operating in July 2001. MST plans to broaden the scope of<br />

its operations during fiscal 2003, and is considering the possibility of beginning<br />

the import of products and components for distribution in <strong>China</strong>.<br />

<strong>Makita</strong>’s manufacturing volume in <strong>China</strong> is expected to rise at a<br />

double-digit rate during fiscal 2003, largely due to the start of full-scale<br />

production of a new rotary hammer series and the Maktec series. As<br />

both MST and MCC are supplying components to other <strong>Makita</strong> Group<br />

overseas factories, <strong>China</strong> is expected to become an increasingly<br />

important component procurement base for the Group. Many of the<br />

concepts and methodologies developed for the Maktec line are<br />

expected to find application with respect to a growing number of<br />

other <strong>Makita</strong> products, and MCC will continue its efforts to further<br />

strengthen its capabilities for supplying components and materials to<br />

the <strong>Makita</strong> Group’s overseas factories.<br />

<strong>Makita</strong> <strong>Co</strong>rporation 11

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