Enlarging factory facilities at Yamaha Kumamoto Products Co., Ltd. and increasing exports from Yatsushiro Port

Yamaha Kumamoto Products Co., Ltd. (Representative: Shinya Sato, Location: Yatsushiro City, Kumamoto Prefecture), a subsidiary of Yamaha Motor Co., Ltd. producing outboard motors, reached an agreement today with Yatsushiro City and Kumamoto Prefecture to enlarge its facilities. The content of the agreement is related to increasing production of outboard motor parts and enlarging the present factory to enable production of aluminum propellers for outboard motors. It will also increase exports of outboard motors from Yatsushiro Port.

Yamaha Kumamoto Products is the main factory producing small- and medium-sized 2-stroke outboard motors for Yamaha. A flexible, highly efficient factory with the latest equipment has been in operation here since September 2000. It covers the whole range of the manufacturing process, from casting to processing, painting and assembly of products. The recently concluded agreement allows enlargement of the factory facilities in line with the plan to begin producing parts for outboard motors up to 70 horsepower from December.

Furthermore, Yamaha Kumamoto Products will now produce all the aluminum propellers for outboard motors it has been purchasing from outside suppliers. With this move, the propellers and main parts will be produced here – from casting on through the process – in order to improve profitability. Yamaha Kumamoto Products plans annual production of some four hundred thousand propellers.

Up to now almost all the outboard motors manufactured by Yamaha Kumamoto Products, other than those destined for the North American market, have been exported from Shimizu Port in Shizuoka Prefecture to countries around the world. Now with completion of the development of export routes including unloading facilities, exports will be increased from Yatsushiro Port as a move to cut physical distribution costs and provide speedier response to market needs. In addition to the several hundred units shipped to the North American market every month, new shipments to Southeast Asia began in November 2001. Increasing exports from Yatsushiro Port are planned from now on as the number of destinations grows.

Annual worldwide demand for outboard motors remains at around 800,000 units, but with the slowdown in the U.S. and world economies, some decrease is to be expected. In spite of these conditions, sales of Yamaha outboard motors are growing, primarily in the U.S. market with expansion of the 4-stroke motor line-up and 2-stroke motors with our own HPDI Direct Injection System that addresses environmental issues. In areas such as Central and South America, Southeast Asia and Africa, where commercial applications such as transportation and fishing are the main uses, there are strong calls for simplified, powerful 2-stroke outboard motors.

With increased production of parts and larger exports from Yatsushiro Port, Yamaha Kumamoto Products will continue to be the main manufacturer of small- and medium-sized 2-stroke outboard motors for Yamaha. We aim to further improve customer satisfaction by providing prompt response to the diverse needs of the market.