Motor Production Plant Completed in Vietnam

May 08, 2006

Sumitomo Heavy Industries, Ltd. (Yoshio Hinoh, President) announced today that the manufacturing plant of the company's local subsidiary in Hanoi, Vietnam, will soon be completed and commence operations. The subsidiary was established in August 2005 to produce power transmission motors.

The new subsidiary will perform all aspects of the production of power transmission motors, including procurement of materials, assembly, and completion of the finished product. Demand for power transmission motors is expanding worldwide, and SHI anticipates substantial growth in overseas markets for such products in the years ahead. This trend has necessitated the strengthening of the company's motor supply system to ensure a stable flow to facilities overseas. Bringing the new production plant into operation will enable SHI to reduce costs associated with power transmission motors while at the same time assuring customers of even higher levels of quality and reliable delivery.

The new motor plant will be SHI's sixth offshore production facility for power transmission business, joining two in China and one each in the United States, Germany, and Britain. SHI plans to continue its efforts to improve sales and service capabilities on a global scale.

Overview of New Motor Production Plant in Vietnam
1. Company name:
Sumitomo Heavy Industries (Vietnam) Co, Ltd.

2. Date of establishment and plant completion:
Company established August 24, 2005
Plant completed May 15, 2006 (operations to commence same day)

3. Capital:
US $8 million (approx. \900 million)
(Wholly owned by Sumitomo Heavy Industries, Ltd.)

4. Corporate officers:
President (part time):
Sadao Ito (General Manager for Production, PTC Group)
Vice President:
Toshiyuki Okoshi (Manager of Motor Department, PTC Group)
Director (part time):
Fumio So (General Manager of Motor Department, PTC Group)
Hiroshi Kunihiro (Head Engineer of Motor Department, PTC Group)

5. Employees:
400 (including 5 Japanese nationals) (forecast for December 31, 2007)

6. Business activities:
Production of power transmission motors of 0.1 kW to 5.5 kW capacity

7. Production capacity:
Approx. 30,000 units per month (forecast for December 31, 2007)

8. Plant:
Site area: 32,000 m2
building floor space: 6,000 m2 (2-story plant and 1-story office annex)
Main facilities: Winding machines, varnish ovens, steel core punching presses, die cast presses, etc.
Total investment: US $8 million (approx. \900 million)

9. Address:
I-7, Thang Long Industrial Park, Dong Anh District, Hanoi, Vietnam
Inside Thang Long Industrial Park (approx. a 40 minute drive northwest from Hanoi)

Motor Production Plant Completed in Vietnam
Motor Production Plant Completed in Vietnam