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Yanmar Agricultural Equipment Co., Ltd. reached its peak perfor-mance in 1996 and that was followed by a 6-year period of decrease in income and in profit. This resulted from a composite of factors,such as maturation of the market, a drop in the prices of rice and vegetables and the economic slump. Under YEP, major restructur-ing was implemented in each business.

In July 2002, Yanmar Agricultural Equipment became a 100%subsidiary of Yanmar. Tractors, which were its key products, were produced at the Kinomoto Plant and the Ibuki Plant of Kanzaki Kokyukoki Mfg. Co., Ltd., development was done at Yanmar’s Trac-tor Division while sales were under the management of Yanmar Agri-cultural Equipment. Further, OEM business for Deere & Company and other companies outside Japan was under Yanmar’s control. The process began by gathering these various functions, which were widely dispersed, and speeding up the decision-making process.

A tractor division and an agricultural machinery division were set up within Yanmar Agricultural Equipment. At the same time the tractor line at the Kinomoto Plant was integrated into the Ibuki Plant, and the latter became the parent production site for trac-tors and tractor transmissions under the newly established Yan-mar Agricultural Machinery Manufacturing Co., Ltd. Following that, in July 2004, the construction equipment production business (Fukuoka Plant) was separated from Seirei Industry Co., Ltd. and Seirei Industry became a company specializing in the production of agricultural machinery other than tractors, such as combines and rice transplanters.

Yanmar Agricultural Equipment took these 2 newly established companies under its umbrella. Formerly concentrated at Yanmar’s Maibara Research & Development Center, the tractor sections of the Agricultural Machinery Development Department were moved to Yanmar Agricultural Machinery Manufacturing and the com-bine and rice transplanter sections were moved to Seirei Industry’s Okayama Plant. By doing this, the respective development, pro-duction and sales components of both the Tractor Division and the Agricultural Machinery Division were unified.

Further, the agricultural facilities sections of Yanmar Agricul-tural Equipment were split off to form Yanmar Green System Co.,Ltd. in February 2008. The agricultural machinery sales companies had been repeatedly consolidated and reorganized since the early 1990s, and in Decem-ber 2008, with the exception of the 2 companies in Hokkaido and Okinawa, the other 10 wide-area sales companies were combined,establishing Yanmar Agricultural Equipment Sales Co., Ltd. with approximately 400 outlets and 3,700 employees.

In February 2009, Yanmar Agricultural Equipment was merged into Yanmar. The purpose in doing this was to improve agricultural machinery business profits and advance overseas business. More than a half century after its founding, bearing the same Yanmar name as it led the agricultural machinery industry and made major contributions to the mechanization of agriculture, the company had, for the present, fulfilled its role.

In addition, in January 2014, Yanmar Agricultural Equipment Sales merged with Hokuto Yanmar Co., Ltd. which had been responsible for the Hokkaido area, and they were reorganized as Yanmar Agri Japan Co., Ltd.

Marine business
In March 2000, preceding implementation of YEP, Yanmar took over control of the production of medium marine engines and compres-sors from the affiliated company Showa Mold & Engineering Co.,Ltd. The latter company’s factory became Yanmar’s Tsukaguchi Plant (Tsukaguchi-honmachi, Amagasaki, Hyogo Prefecture). And with the closing of Yanmar’s Nagahama Plant in March 2004, pro-duction of small marine engines was transferred there, integrating small and medium-size engine production at the Tsukaguchi Plant.

In addition to the considerable reduction in the number of people gaining employment in the fishing industry added to the collapse of the bubble economy, there was little demand for replacement purchases of the highly durable FRP boats and therefore produc-tion slumped. Yanmar Shipbuilding & Engineering Co., Ltd. was inevitably forced to downsize its operations. In 1995, the Tohoku Division was closed, followed by the main office plant in Okayama in 2002, integrating everything at the Oita Division. The reason for selecting the Oita Plant instead of the plant at the Okayama head office was that the Oita Plant had the newest equipment and facilities and it could manufacture everything from mass-produced small boats to large fishing vessels.

There was also a major change in the sales system. In connection with YEP, in July 2002, Yanmar Marine System Co., Ltd. was established.It began as a sales company with control of the whole domestic marine market and the overseas marine engine market, centered on Asia. In September 2004, the marine sections of the 6 nation-wide general sales companies were consolidated into a single marine sales department.

In July 2002, the company set up Yanmar Marine International B.V. (abbr. YMI) inside Yanmar Europe B.V. in Almere, The Neth-erlands, which commenced operations the next year. Established to conduct sales and service of marine engines, YMI was also entrusted with decision-making authority concerning product development and production. In addition, it supervised worldwide operations functions for pleasure boat engines. Placing this strategic base in Europe, which is a major market, as well as employing local person-nel in top management positions were firsts for the Yanmar Group.

However, following the Lehman Shock in September 2008, the world marine market slowed rapidly. Using this as an opportu-nity to seek a synergy effect in management resources from both commercial and pleasure boat engine businesses, the company