Production/Sales/Service Joint Company to Be Launched in Brazil

TADANO LTD. (Koichi Tadano, President and CEO) has reached an agreement with its local sales agent (T.D.B. do Brazil Industria e Comercio Ltda.; hereafter, TDB) and with Mr. Marcio Guimaraes de Campos (owner of TDB; hereafter, Mr. Campos), thereby establishing a joint company to serve as the company's base of efforts to strengthen the company's Brazilian production, sales, and service operations.

1.Background

In the Latin American market, the TADANO Group manages a sales and service network through TADANO America Corporation and a number of sales agents consistent with the Group's long-range objective-ecoming the world's No.1 in the field of LE (lifting equipment). The region's rich natural resources and growing global demand for these natural resources are expected to generate significant and growing demand for construction machinery.

Energized by its role as host for the World Cup and Olympic Games in 2014 and 2016, respectively, Brazil in particular is poised to demonstrate significant demand growth for the construction machinery in response to the growing construction investment, primarily in the field of infrastructure. Meanwhile, controls on imports of finished truck cranes have been tightened in recent years, which has led the TADANO Group to seek out new approaches to its Brazilian business to achieve deeper market penetration.

In the context of the preceding developments, in addition to importing, selling, and servicing finished cranes, TADANO Group has chosen to establish its Brazilian operations with manufacturing capabilities to import semi-finished cranes for full local assembly. The new approach has led to a basic agreement on establishing a local joint company between the Group and TDB (longtime sales agent of TADANO products in Brazil) and Mr. Campos. To improve services and increase market share, the new company also plans to produce some crane components.

2.New Company Profile

1	Name	TADANO Brasil Ltda. (name for official registration to be decided later)
2	Date established	2011
3	Location	Itu, Sao Paulo, Brazil
4	Capital	5.9 million US dollars (approx. 470 million yen, ?at 1 US dollar = 80 yen) (percentage of investment by TADANO, 51%; by TDB and Mr. Campos, 49%;)
5	Business description	Production, sales, service, related to construction cranes and other equipments Imports of crane tops (semi-finished products) from Japan/China for installation on local trucks Import and sale/servicing of TADANO Group products Production of some crane components
6	Board member composition	3 directors (of which 2 are appointed by TADANO; Mr. Campos to serve as first President)
7	Scheduled corporate events	November 2010 Founding basic agreement to be signed and then founding preparatory team to be dispatched by TADANO to begin preparatory work to ensure completion Targets a sales volume of 46 million US dollars for the period from January through December 2013.

*Photo (Left:Marcio Guimaraes de Campos / Right: Koichi Tadano)