Metal One Corporation (headquartered in Minato-ku, Tokyo; President: Masashi Mizutani) will establish this month the PM Cabin Manufacturing Co., Ltd., in the Suzhou New District in Jiangsu, China, as a joint venture with Press Kogyo Co., Ltd. (headquartered in Kawasaki-shi, Kanagawa; President: Shoichi Namiki). Metal One and Press Kogyo will have stakes of 35% and 65%, respectively, in the new company, which, as China's largest cabin manufacturer, will locally manufacture and sell hydraulic shovel cabins (see attached photographs) for large foreign-affiliated construction machinery makers expanding in and venturing into China.

Boosted by aggressive development policies driven by government-led infrastructure projects, China's construction machinery (hydraulic shovels) market has overtaken Japan's (20,000 units produced in FY2003) to become the world's No. 1 market with production of 30,000 units in FY2003. Against this backdrop, Metal One will contribute to the creation of new demand and value in China's construction machinery market by introducing advanced technological and developmental capabilities from Japan through its partnership with Press Kogyo, which boasts some of the most advanced technology in the world, in the field of cabin manufacturing for construction machinery makers. Utilizing such approach and know-how, and in addition to the strength of its physical distribution capabilities, Metal One aims to expand its operating revenue while establishing a foothold for providing total services to construction machinery makers and pursuing its strategic goal of maximizing value.

The new company will provide a more finely tailored service to construction machinery makers who, until now, relied on imports of cabins made in Japan. This will be done through local procurement, as much as possible, of the parts and materials (die-stamped panels, glass, resin, rubber, etc.) required for cabin construction within China; cabin assembly and painting; and just-in-time delivery, among other things.

In the short term, the new company will have as its main customers Caterpillar Xuzhou Ltd. (Xuzhou, Jiangsu), a Chinese subsidiary of Caterpillar Inc. (U.S.), and Chengdu Kobelco Construction Machinery Co., Ltd., (Chengdu, Szechwan) and Hangzhou Kobelco Construction Machinery Co., Ltd., (Hangzhou, Chekiang), both local subsidiaries of Kobelco Construction Machinery Co., Ltd. In the future, the company will target major European-affiliated construction machinery makers expanding in and venturing into China and establish a solid position as a supplier to such firms.

Details:
	1.	Name:		PM Cabin Manufacturing Co., Ltd.
	2.	Headquarters:		Suzhou New District, Jiangsu, China
	3.	Board:		Chairman: Ichiro Ono (Senior Executive Managing Director, Press Kogyo Co., Ltd.) Vice Chairman: Minetsugu Takeda (Managing Executive Officer, Metal One Corp.)
	4.	Management:		President: Katsushi Takeuchi (Executive Officer, Press Kogyo Co., Ltd.) Vice President: Tadao Yasukawa (Project Leader, Metal One Corp.)
	5.	Capitalization:		US$6 million (approx. ¥700 million)
	6.	Share allotment ratio:		Metal One Corp.: 35%, Press Kogyo Co., Ltd.: 65%
	7.	Establishment schedule:		June 2004, with delivery scheduled to begin June 2005
	8.	Expected annual sales:		Approx. ¥3 billion
	9.	No. of employees:		Approx. 100 (at establishment)
	10.	Plant Area:		54,000m2
	11.	Main customers:		Caterpillar Xuzhou Ltd. Chengdu Kobelco Construction Machinery Co., Ltd. Hangzhou Kobelco Construction Machinery Co., Ltd.