Makita (China) Co., Ltd.

Reports from Strategic Areas
In March 2001, Makita established Makita (Shanghai) Trading Co., Ltd.
(MST), to handle the export of other locally produced low-cost components
and materials to the Group’s overseas manufacturing and marketing
units. Based in Shanghai’s Waigaoqiao (free-trade zone), MST has
been helping improve the Makita Group’s services and competitiveness
since it began operating in July 2001. MST plans to broaden the scope of
its operations during fiscal 2003, and is considering the possibility of beginning
the import of products and components for distribution in China.
Makita’s manufacturing volume in China is expected to rise at a
double-digit rate during fiscal 2003, largely due to the start of full-scale
production of a new rotary hammer series and the Maktec series. As
both MST and MCC are supplying components to other Makita Group
overseas factories, China is expected to become an increasingly
important component procurement base for the Group. Many of the
concepts and methodologies developed for the Maktec line are
expected to find application with respect to a growing number of
other Makita products, and MCC will continue its efforts to further
strengthen its capabilities for supplying components and materials to
the Makita Group’s overseas factories.
Makita Corporation 11