December 10, 2007 -- Major construction equipment manufacturers in Japan are hurrying to develop equipment compatible with new exhaust gas regulations set to take effect from 2011, aiming to be among the first to market new models that satisfy the more stringent rules.

Shin Caterpillar Mitsubishi Ltd. plans to spend 5 billion yen (US$44.86 million) by 2010 to expand a site on the outskirts of Kobe where engine performance and durability are tested. The company is responsible for development of hydraulic shovels that are sold worldwide by Caterpillar Inc. and plans to add 20 per cent more engineers for this by the end of 2009.

Komatsu Ltd. (TSE:6301) during fiscal 2007 raised investment in test equipment to around 4 billion yen, a 60 per cent increase from fiscal 2006. The company plans to develop and produce exhaust gas cleaning equipment for diesel engines. It is also working with U.S. engine maker Cummins Inc. to develop turbochargers to increase fuel efficiency and output.

Hitachi Construction Machinery Co. (TSE:6305) is bolstering the test functions of its Tsuchiura plant, adding equipment that can verify the performance of engines and hydraulic equipment.

Source: Asia Pulse