Kubota - Company History
- Founding
- In February 1890 Kubota Gonshiro founded Kubota Iron Works at Mikuratoato-cho, Minami-ku, Osaka, and began making and selling castings of every kind. In July 1893 it took up the manufacture of cast iron pipe for waterworks, and with the marubuki tatekomi casting process of 1900 it achieved at home what even large firms had not been able to take to volume, holding some 60 per cent of the domestic market by the 1910s. It widened its range with small engines for farm and industrial use in February 1922 and with the purchase of Sumidagawa Seitetsujo in February 1927, and in December 1930 it took corporate form as two companies, one for castings and one for machinery, merging them back into one in March 1937. In May 1949 it listed on the Tokyo and Osaka Stock Exchanges, and it changed its name to Kubota Tekko in June 1953 and to Kubota in April 1990.
- The Decision
- Holding on to the founding business, Kubota moved only its mainstay from cast iron pipe to farm machinery. In March 1960 it put the T15, a wholly domestic tractor, on sale, and shifted resources away from an extension of the power tiller towards a system of complete machines — riding tractors, harvesters and rice transplanters. When the acreage-reduction policy capped demand at home, it established Kubota Tractor Corp. in the United States in September 1972 and moved into the 25–30 horsepower bracket the American majors had left thin. The diversification announced in May 1990 and called “parachuting”, by contrast, carried the company into one unfamiliar field after another without reaching a third source of earnings, and in 2003 the housing materials business was separated off. On the side of the founding business, in June 2005 it disclosed the asbestos disease around the old Kanzaki plant and paid the price for the asbestos it had handled alongside cast iron pipe. Nothing the diversification set out to build survives, and machinery still accounts for 87 per cent of sales.
- Today
- Machines built for the paddy fields of Japan now earn four-tenths of sales in North America. Of revenue of $20.2B (¥3.02tn) in the year to December 2025, North America accounted for $8.1B (¥1.22tn), or 40 per cent, while Japan came to $4.6B (¥685bn), only 23 per cent. By business, machinery — farm machinery, engines and construction machinery — was $17.6B (¥2.63tn), 87 per cent of the total, and Water & Environment, the heir to cast iron pipe, $2.5B (¥374bn). In April 2022 the company took Escorts of India as a subsidiary for up to about $1.1B (¥141bn), buying basic tractors in the low-price bracket together with their dealer network in a country where fourteen years of its own high-priced machines had won no share. Inventory adjustment in North America, however, cut operating profit to $1.8B (¥265bn), down by more than $334.1M (¥50bn) on the year before, and driving ROIC through the whole company has been set as the central task.
- Competition
- At home Kubota holds first place in farm machinery; in North America it is the pursuer of John Deere. The machines built for the same rice-growing work in Japan come from Yanmar and Iseki, and Kubota has held the lead with the system of complete machines it reassembled in the 1960s. In North America its opponents are John Deere and CNH, whose main ground is large tractors, and by moving into the gap of 25–30 horsepower machines it avoids meeting them head on. In mini excavators for construction it also overlaps with Komatsu, which entered hydraulic excavators late. Varying the size of the machine to live alongside each rival did not work in India, the largest market in the world, and forced the detour of buying a local major.
Timeline
1890–1929A foundryman takes on cast iron pipe, then widens into machinery
- 1890Kubota Gonshiro founds Kubota Iron Works in Osaka
- 1893Manufacture of cast iron pipe for waterworks begins
- 1900The marubuki tatekomi vertical casting process is devised
- 1901The Funayama-cho works is built for pipe and machinery
- 1908A rotary casting process for cast iron pipe is patented
- 1914A machine shop at Funade-cho begins marine machinery
- 1917Kansai Iron Works acquired as the Amagasaki plant; entry into machine tools
- 1919Jitsuyo Jidosha Seizo founded; a brief entry into motor vehicles
- 1922Manufacture of small engines for farm and industrial use begins
- 1924Patent for an automatic moulding machine, after the core-making machine of 1923
- 1927Sumidagawa Seitetsujo acquired; diesel and marine engines taken up
1930–1959Incorporation as two companies, and the power tiller that sprouted after the war
- 1930Kubota Iron Works incorporates, split into a castings company and a machinery company
- 1937The two are merged again; the Sakai plant begins mass production of engines
- 1938Sumidagawa Seitetsujo merged in as the Sumidagawa plant
- 1940Mukogawa plant built; centrifugally cast iron pipe from October 1941
- 1943Kanzaki plant established in Amagasaki, Hyogo Prefecture
- 1947Power tiller production begins — the start of farm machinery
- 1949Shares listed on the Tokyo and Osaka Stock Exchanges
- 1950Odawara Taizo becomes president; a divisional structure by product is adopted
- 1953The company name is changed to Kubota Tekko
- 1954Asbestos pipe and vinyl pipe production begins; a vinyl pipe plant is built
- 1957Kubota Kenzai Kogyo founded; entry into housing materials
- 1959Founder Kubota Gonshiro dies; spiral steel pipe production begins
1960–1989Two decades that made farm machinery the mainstay and carried it to North America
- 1960The T15, a wholly domestic mid-size tractor, goes on sale
- 1961Entry into the environment business
- 1962Volume production established for industrial machinery and cast steel products
- 1966The HC75 three-row binder with automatic tying is launched
- 1967Annual sales pass ¥100bn; full entry into housing materials
- 1969Utsunomiya plant brings rice transplanters and binders to volume production
- 1972Kubota Tractor Corp. established in the United States
- 1974Europe Kubota Tractor Sales founded in France
- 1975Tsukuba plant built as a dedicated works for farm tractors
- 1976Shares listed on the New York Stock Exchange (delisted July 2013)
- 1980Kashima plant built for exterior wall materials
- 1985Sakai Rinkai plant built for engines
1990–2026Diversification by parachute, the asbestos disclosure, and the tilt to farm machinery abroad
- 1990The company name is changed to Kubota Corporation
- 1994Subsidiaries are dissolved
- 1999A water-pipe cartel of some thirty years comes to light; voluntary redundancies solicited
- 2003Non-core businesses are separated and cut back
- 2005Kubota-CI formed with CI Kasei for synthetic-resin pipe
- 2005Asbestos at the old Kanzaki plant becomes a public issue
- 2007On-site inspections follow one after another; Siam Kubota Tractor founded
- 2009Masumoto Yasuo becomes president, the first engineer in forty-two years
- 2012Kverneland ASA of Norway acquired
- 2016Great Plains Manufacturing acquired
- 2019The overhaul of the core IT systems begins
- 2022Escorts of India acquired; the Global Technology Research Centre opens
Founding Story
1890–1929A foundryman takes on cast iron pipe, then widens into machinery
Kubota began in 1890 as a one-man foundry in Osaka and made its name on a job the country had written off — casting water pipe in Japan instead of importing it. The seven years it took to reach a process fit for volume set the company's working habit: learn a hard technique in-house, patent it, then build the machines that use it, until a single pipe shop was carrying four product groups and had outgrown the man who owned it.
The founding years, aimed squarely at cast iron pipe for waterworks
In February 1890 Kubota Gonshiro (久保田権四郎) founded Kubota Iron Works (久保田鉄工所) at Mikuratoato-cho, Minami-ku, Osaka[1], and began making and selling castings of every kind[2]. It started as a town workshop under sole proprietorship, and Gonshiro was both its founder and its first president[3]. Three years later, in July 1893, it took up the manufacture of cast iron pipe for waterworks[4]. What it made in these founding years was castings of various sorts, chiefly cast iron pipe for water and gas[5]. Casting pipe was not easy, however, and a further seven years passed from that start before a technique fit for volume production was established[6].
The barrier to volume was broken by a refinement of the casting method: in 1900 he devised the marubuki tatekomi vertical casting process (丸吹立込鋳造法) and put it into practice[7]. The following year, 1901, the Funayama-cho works was built[8] and began making and selling cast iron pipe and machinery of various kinds[9]. In 1908 he went on to devise a rotary casting process for cast iron pipe and obtained a patent on it[10], settling into a pattern of assembling casting techniques in-house and fencing them in with patents. Holding both the plants and the techniques, cast iron pipe settled in as the pillar of Kubota Iron Works[11].
The Taisho years, widening from castings into machinery
As the casting business grew, Gonshiro turned to the machining of what it cast, and in 1914 he added a machine shop at the Funade-cho works[12] and began building marine machinery such as steam engines[13]. In 1916 the range widened to machine tools, economisers, stokers, sluice valves and general machinery[14], and in 1918 to moulds[15]. Rather than merely selling castings, the company set itself up to build the machines that used them[16], and through the Taisho years the work of grafting a second pillar, machinery, onto the single pillar of cast iron pipe went forward.
As demand for cast iron pipe and castings rose, the company bought the means of production outright: in 1917 it acquired Kansai Iron Works (関西鉄工所), made it the Amagasaki plant, and moved the cast iron pipe division of the Funade-cho works there[17]. Alongside it built the Okajima plant (恩加島) for fittings, and the Ichioka plant for drainage pipe, fittings and general castings[18]. In February 1922 it took up the manufacture of small engines for farm and industrial use[19], and in the same year began casting heat-, acid- and alkali-resistant castings, gunmetal and light alloys[20]. The engine business that would later grow into farm machinery began in that year[21]. In November 1919 it also set up Jitsuyo Jidosha Seizo and tried its hand at building three- and four-wheeled vehicles, but that venture found no market and was withdrawn.
Casting technology fenced in by patents, and the purchase of Sumidagawa Seitetsujo
The accumulated casting knowledge showed itself at the end of the Taisho era in two patents: an automatic core-making machine in 1923[22] and an automatic moulding machine in 1924[23]. Both replaced hand work with machinery, and with these two the volume production of cast iron pipe advanced a stage[24]. In 1924, in step with the revision of the Weights and Measures Law, the Funade-cho works also began making weighing machines[25]. The casting techniques and the machines that supported them were now both held in-house[26].
Additions to plant continued: in February 1927 the company bought Sumidagawa Seitetsujo Ltd. (隅田川精鉄所) and expanded the cast iron pipe business[27]. In that same year, 1927, it also took up automatic stokers, diesel engines and small marine engines[28]. In under forty years from its founding, Kubota Iron Works had reached a size carrying four product groups — cast iron pipe, castings, machinery and engines[29]. A town workshop under sole proprietorship could no longer contain that spread[30].
1930–1959Incorporation as two companies, and the power tiller that sprouted after the war
The 1930s split the firm in two and then put it back together, and the approach of war filled Osaka and Amagasaki with new plants — among them the Kanzaki works whose asbestos would return sixty years later. What sprouted after the defeat was smaller and more consequential: a power tiller, taken up in 1947, that turned an engine supplier into a maker of the machines farmers themselves used. Sales were $22.7M (¥8bn) in 1953, the first year in the record, and $65.6M (¥24bn) by 1959.
Incorporation, splitting castings and machinery into two companies
In December 1930 Kubota Iron Works took corporate form by splitting into two joint-stock companies[31]. One was Kubota Iron Works Ltd., capitalised at ¥4.5 million, making chiefly cast iron pipe for water and gas and castings of all kinds[32]; the other was Kubota Iron Works Machinery Division Ltd. (久保田鉄工所機械部), capitalised at ¥2.5 million, making internal-combustion engines, land and marine machinery, machinery for iron- and steel-making, sluice valves, weighing machines and machine tools[33]. The two lineages, castings and machinery, were split into two companies as they stood. In the same year, 1930, the company mark was redrawn as well: the circle-and-cast-iron-pipe design adopted in 1925[34] had its circle replaced by a gearwheel[35]. It was a rewriting of the sign, from the Kubota of castings to the Kubota of castings and machinery[36].
The two-company structure was folded up after seven years: in March 1937 Kubota Iron Works Machinery Division Ltd. was merged into Kubota Iron Works Ltd.[37] In September of that year the company bought Daido Iron Works (大同鉄工所) and made it a steel-casting plant[38], and in November it built the Sakai plant and began mass production of engines for farm and industrial use[39], installing new machinery imported from Europe and the United States[40]. In August 1938 Sumidagawa Seitetsujo was merged in as the Sumidagawa plant[41], taken into the organisation eleven years after its purchase in 1927.
Production sites went on spreading as war approached: in October 1940 the Mukogawa plant was built to expand the industrial machinery business[42], and from October of the following year it began casting centrifugally cast iron pipe[43]. In March 1943 the Kanzaki plant was established[44], and in the same month the company entered the casting of special cast-steel products and high-silicon cast iron[45]. In July 1945 the Fuse plant was added[46]. Of these, the Kanzaki plant in Amagasaki, Hyogo Prefecture, would become the scene, more than sixty years later, of the asbestos damage that shook the company's management[47].
Post-war farm machinery, which began with the power tiller
In March 1946, the year after the defeat, the company began making sawmill machinery and machinery for mining[48], and in 1947 it took up the power tiller[49]. The farm machinery division that would later account for four-tenths of sales[50] began with that tiller. Using as the power source the small farm and industrial engines it had started in 1922[51], Kubota crossed over to making the machines the farmer himself used. In May 1949 it listed on the Tokyo Stock Exchange and the Osaka Stock Exchange[52], and in August 1950 it adopted a divisional structure by product[53], putting in a mechanism that closed the books on profit and loss product by product.
The post-war product range thickened around cast iron pipe as well: in July 1950 came metal-mould centrifugally cast iron pipe[54], in 1951 chrome cast iron pipe and cement-lined pipe together with civil-engineering and construction plant of various kinds[55], and in 1952 cast steel pipe and pumps[56]. In December 1952 the Mukogawa machinery works began making pumps[57]. From a company that made the pipes of a waterworks, the range widened to one that handled the equipment moving the water as well[58].
A change of name, and the start of asbestos pipe production
In June 1953 the company changed its name to Kubota Tekko Ltd. (久保田鉄工)[59]. The following year, 1954, it began making asbestos pipe and vinyl pipe[60], and in April of that year it built a vinyl pipe plant and entered full production of synthetic-resin pipe[61]. Asbestos-bearing water pipe was a piping material in wide use at the time, and it is from this year, 1954, that the handling of asbestos began — the asbestos later called to account as damage in the neighbourhood of the old Kanzaki plant[62].
In the second half of the 1950s the range stretched further into housing materials and steel pipe: in April 1956 into mobile cranes and materials-handling machinery[63], and in November 1957 into housing materials with the establishment of Kubota Kenzai Kogyo Ltd. (久保田建材工業)[64]. In December 1959 it began making spiral steel pipe[65] and built the Ohama plant in the same month[66]. The skeleton of four divisions — cast iron pipe, farm machinery, general machinery and castings[67] — was largely in place by this time. Of the four, the one that would step into the leading role over the next decade was farm machinery[68].
Notes
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota news release, 17 April 2006: outline of the rules for relief payments to asbestos disease patients and their families in the neighbourhood of the old Kanzaki plant↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Securities Analysts Journal, vol. 2 no. 5, 1964: “On the recent position of Kubota Tekko”, by Hiro Keitaro↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Kubota news release, 17 April 2006: outline of the rules for relief payments to asbestos disease patients and their families in the neighbourhood of the old Kanzaki plant↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Kubota, securities report for the 135th term (FYE December 2024), corporate history section↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha, 1968↩
- Securities Analysts Journal, vol. 2 no. 5, 1964: “On the recent position of Kubota Tekko”, by Hiro Keitaro↩
- Securities Analysts Journal, vol. 2 no. 5, 1964: “On the recent position of Kubota Tekko”, by Hiro Keitaro↩
References & sources
- Corporate Histories: A Century of Meiji, Keizai Shunju-sha (1968), the Kubota entry.
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