| Yamaha Motor Co., Ltd. (the “Company”) has
established a subsidiary in Shanghai to engage in import-export and marketing
operations in China.
The new subsidiary is known as Yamaha Motor Commercial Trading (Shanghai)
Co., Ltd. (YMCT). It is capitalized at U.S.$3.7 million (approx. 400 million
yen) and is wholly owned by the Company.
The business lines of YMCT are as follows:
1) Export of Yamaha products manufactured in China
2) Import and domestic sale of Yamaha products manufactured in Japan
and elsewhere outside China
3) Export of knockdown kits and raw materials procured in China
YMCT began operations with 40 employees, and plans to post about 740
million yuan (about 10.6 billion yen) in sales in 2006, rising to about 870
million yuan (approx. 12.4 billion yen) in 2007.
In the past, completed motorcycles have been manufactured in China
and exported by Chongqing Jianshe Yamaha Motor Co., Ltd. and Zhuzhou Jianshe
Yamaha Motor Co., Ltd. Meanwhile, multi-purpose engines have been manufactured
by Yamaha Motor Taizhou O.P.E. Co., Ltd., and generators by Fuzhou Jiaxin
Soqi Power Products Co., Ltd. Knockdown kits and raw materials procured in
China have been exported by Yamaha Motor (Suzhou) Co., Ltd.
The Company has been increasing exports of completed motorcycles
and power products manufactured in China, as well as knockdown kits and raw
materials procured in China. Against this backdrop, YMCT aims to expand imports,
and to increase the efficiency of export operations formerly dispersed throughout
the nation.
In its new medium-term management plan - NEXT50-Phase II -
for 2005 through 2007, the Company has made developing the markets and/or
restructuring the business foundation in Brazil, Russia, India and China -
the so-called BRICs - a key priority. The creation of the new subsidiary follows
the integration of two manufacturing joint-venture partners and establishment
of a unified sales company and a research and development company in Shanghai
in 2004.
Thus, the Company has further improved its comprehensive business
system - encompassing product development, purchasing, manufacturing and sales
- in the Chinese market. With an effective system in place, the Company intends
to respond more quickly to markets inside and outside China, and hone its
competitive edge worldwide.
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