Joint venture for manufacture of construction machinery metalworking parts established in China

TADANO Ltd. is pleased to announce that itself, together with two other companies -AMRON Co., Ltd. and KAWANISHI Co., Ltd.- have recently established, with HEBEI JINTIANLI MACHINERY MANUFACTURE Co., Ltd. of Zhuozhou City, a joint venture company dedicated to the manufacture of metalworking parts for construction machinery.
The new company was granted a business license by the Chinese authority on January 21 this year.

1.Background

Through a joint initiative with BEIJING JINGJENG CONSTRUCTION MACHINERY Co., Ltd (hereinafter, JINGJENG CONSTRUCTION MACHINERY), TADANO founded in 2003 the company BQ-TADANO (BEIJING) CRANE Co., Ltd (hereinafter, BQ-TADANO) to serve as the base of operations for the manufacture and sales of truck cranes in the Chinese market, with a view to implementing the expansion of its overseas business -one of TADANO's priority strategies. TADANO, through its expatriated Japanese president, has since taken up the reins of management of the joint venture, and is expending efforts to strengthen its manufacturing and marketing services, with the ultimate goal being to realize and secure TADANO as a high performance and high quality brand within the Chinese market.

BQ-TADANO is currently initiating measures to improve manufacturing quality and reduce costs. TADANO established in 2007 JC-TADANO (BEIJING) HYDRAULIC Co., Ltd., a manufacturing joint venture for hydraulic parts, and further has recently established the above new manufacturing joint venture for metalworking parts.

2.Outline of Joint Venture

1	Corporate Name	JINTIANLI-TADANO (HEBEI) IRONPARTS Co., Ltd.
2	Established	January 21, 2010 (as stated in the business license)
3	Location	Hebei Province Zhuozhou Development Zone Industrial Park (approximately 60 km southwest of downtown Beijing)
4	Corporate capital	5.5 million US$ (Ratio of capital contribution: 55.8% for TADANO, 5% each for AMRON and KAWANISHI, 34.2% for HEBEI JINTIANLI)
5	Description of business	Manufacture of metalworking parts for construction machinery (Manufacture of construction crane parts, including booms, jibs, outriggers. Currently, the company will mainly fabricate crane parts destined for BQ-TADANO.)
6	Number of employees	Approximately 150 (estimated as at the end of 2010)
7	Plan	Full-scale operation is slated for July 2010 Expected sales as at the end of 2011: 57 million yuan (approximately 740 million yen at the exchange rate of 1 yuan = 13 yen) Company operations are anticipated to lead the company into profit by the end of 2012.

(For reference)

1.Outline of HEBEI JINTIANLI MACHINERY MANUFACTURE Co., Ltd.

1. Company name: HEBEI JINTIANLI MACHINERY MANUFACTURE Co., Ltd.
2. Location: Hebei Province Zhuozhou Development Zone Industrial Park in China
3. Description of business: Manufacture of various types of metalworking parts
4. Number of employees: 106
5. Sales: 35 million yuan for 2008 Jan.-Dec. period (approx. 455 million yen)
   (Exchange rate: 1 yuan = 13 yen)

2.Outline of TADANO Ltd.

1. Company name: TADANO Ltd.
2. Location: Ko-34 Shinden-cho, Takamatsu, Kagawa
3. Description of business: Production and distribution of construction cranes, truck loader cranes and aerial work platforms, etc
4. Number of employees: 1,400 (non-consolidated), 2,912 (consolidated)
5. Sales: 162.7 billion yen (consolidated) for fiscal year 2008 (period ended in March 2009)

3.Outline of AMRON Co., Ltd.

1. Company name: AMRON Co., Ltd.
2. Location: 7-21 Suehiro-cho, Takamatsu, Kagawa
3. Description of business: Sales and processing of various types of steel materials and nonferrous metals
4. Number of employees: 207 (non-consolidated)
5. Sales: 22.6 billion yen for period ended in February 2009

4.Outline of KAWANISHI Co., Ltd.

1. Company name: KAWANISHI Co., Ltd.
2. Location: 296 Kasuga-cho, Takamatsu, Kagawa
3. Description of business: Processing of structures for construction cranes, and design, manufacture and installation of various types of material handling equipment and labor-saving machines
4. Number of employees: 65
5. Sales: 3.4 billion yen for period ended in June 2009

5.Outline of BQ-TADANO (Beijing) Crane Co., Ltd.

1. Company name:BQ-TADANO (Beijing) Crane Co., Ltd.
2. Location: Beijing Shunyi Linhe Industrial Development Zone
3. Description of business: Manufacture and sales of construction cranes, and provision of related services
4. Number of employees: 288
5. Sales: 360 million yuan (approx. 4.6 billion yen) for Jan.-Dec. 2008 period
   (Exchange rate: 1 yuan = 13 yen)