Kyodo News reported that Kobelco Construction Machinery Co is considering building a new factory in the city of Hiroshima to manufacture hydraulic excavators in light of growing demand in emerging economies, having suspended the plan following the 2008 global financial crisis.

As per report, investment in the new factory would come to JPY 20 billion and its envisioned production capacity would be 7,000 units a year, the same as its other factory in Hiroshima.

It may be recalled that Kobelco, a Kobe Steel Limited arm, plans to begin construction of the new factory in fiscal 2011 to ship products to both domestic and overseas markets.

(Sourced from Kyodo News)