Sakai Heavy Industries: Procurement of parts for construction machinery: “De-China” progresses
-Delivery of parts procurement in the construction machinery industry, dependence on China-
Sakai Heavy Industries:
At the US plant (Georgia), the procurement of casting weights for road rollers has been completely replaced from made in China to made in Indonesia.
Sakai Heavy Industries started operation of its Indonesian factory (West Java) in 1995.
Searching for a supplier in Indonesia,
Including the implementation of technical guidance
Not only in quantity but also in quality
With the prospect that you can alternate from Made in China.
Dependence on China has been zero since FY2008.
However, road roller castings for China are procured in China.
Sumitomo Construction Machinery:
Shifted construction machinery casting and forging products produced at the Chiba Plant (Chiba City) from products made in China to products made in Vietnam.
Some also started importing from India.
Procurement from Vietnam:
Sumitomo Construction Machinery has begun procuring cast and forged products from Vietnam.
The ratio is still less than 10%.
It is planned to increase to about 20% at the end of 2020.
Decentralization of parts procurement:
In addition to political risks, China also has risks of natural disasters and environmental regulations.
In addition to the US-China conflict
From the lessons of the new coronavirus
The risk of relying on one country for parts increases,
Companies are accelerating their response.