Japan's top maker of construction machinery Komatsu Ltd. said Wednesday it plans to start assembling diesel-electric hybrid excavators in China this year.
Komatsu — which last year began producing the machines as a test run in Japan — targets sales of 700 units for the current financial year from April, a company spokesman said.
"Of these, we aim to sell 500 units in China, by producing them in our subsidiary in the country's Shandong province," he said.
On average, a hybrid excavator uses 25 percent less fuel than a conventional diesel-powered model, said the spokesman.
"Our costumers favour the fuel-efficiency of hybrid construction machinery, and the ratio of fuel costs to personnel costs is high in emerging economies."
The spokesman said: "We need little new investment in the existing plant, as the configuration of hybrid construction machinery is almost the same as for conventional machinery."
Komatsu shares rose more than one percent in late morning trade on the Tokyo stock exchange Wednesday.
China accounts for about 10 percent of sales for Komatsu, which competes internationally with global market leader US-based Caterpillar Inc.
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