Kubota Corporation Group, a Japanese construction machinery maker, is building a  to produce mini-excavators near its existing facility in Germany.

Its German subsidiary, Kubota Baumaschinen (KBM), operates the existing factory in Zweibr眉cken, southwest Germany, producing mini-excavators and wheel loaders for the European market.

KBM said the production of mini excavators in the new factory will in mid-2026. The company aims to boost its production capacity in Germany by 40% by 2028 from the current level.

A mini excavator made by KBM (Photo: Kubota Baumaschinen)

It said Europe is one of Kubota鈥檚 leading markets for mini excavators, and it expects this market to continue growing over the medium and long run.

鈥淭his expansion is underpinned by solid demand for construction work and housing construction in urban areas, including the renewal of ageing infrastructure,鈥� it said.

鈥淏oosting production capacity is essential to capture the European market growth to achieve Kubota鈥檚 2028 goal of 1 trillion yen (US$6.2 billion) in sales for the construction machinery business.鈥�

The size of the investment for the new factory was not disclosed.

Established in 1989, KBM specialises in producing compact and short-tail excavators. It has about 800 employees in Germany. 

Due to the lack of space for expansion at its current production site, the company said it would establish a new factory by acquiring nearby land and buildings that can be converted to produce construction machinery.

Last month, KBM announced that it would acquire part of Tadano Demag GmbH鈥檚 factory premises in Zweibr眉cken. The company added that this strategic investment would support Kubota鈥檚 long-term growth plan and enhance its ability to meet market demands.

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