August 29, 2007
IHI Shibaura Machinery Corporation

ISM to build small diesel engines in China with Perkins

IHI Shibaura Machinery Corporation (ISM) announced its intention to establish a new joint venture company with Perkins Engines Company, a Caterpillar company, to manufacture sub 60 hp diesel engines in Wuxi, Jiangsu province, China.

ISM started the supply of Perkins branded engines used for construction, agriculture, turf and generator sets from 1985. ISM established a joint venture company with Perkins to produce and sell the small diesel engines under ISM's engineering licence in the UK in 1995 and in the US in 2004.

With demand for emission regulation complied small diesel engines in China, ISM decided to build the third engine facility in Wuxi with Perkins under ISM's engineering licence to provide better support to local customers and more readily engine supply.

This new plant will allow us to grow our small engine business and ISM plan to supply main engine components from Japan initially.

1. Location : Wuxi National High-Tech Industrial Development Zone, Jiangsu province, China
2. Production Start : Autumn 2008 (planned)
3. Component Supply : Main components initially supplied from Japan and Europe