Corporate Brochure

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The Kawasaki Heavy IndustriesGroup offers a vast array of products that demonstrate technological mastery of the land, sea, air and outer space.

■ Introduction ................................................................................................2■ Main Businesses and Products...............................................................3■ Aerospace

Aircraft....................................................................................................5Jet Engines..............................................................................................7Space Systems.......................................................................................8

■ Rolling Stock ...............................................................................................9■ Shipbuilding

Ships ......................................................................................................11Marine Machinery and Equipment................................................12

■ Energy Plants and Facilities ...................................................................13■ Industrial Equipment

Industrial Plants and Equipment ....................................................15Automation Systems ........................................................................17

■ Environment and RecyclingEnvironmental Protection Facilities .............................................19Resource Recycling Systems..........................................................21

■ InfrastructureCivil Engineering and Construction Machinery ........................23Steel Structures..................................................................................25

■ Consumer Products ..............................................................................27■ Research and Development.................................................................31■ Environmental Management Activities..............................................37■ Global Network

Domestic Production and Sales Bases ........................................39Overseas Production and Sales Bases.........................................41

■ History .......................................................................................................43■ Corporate Data.......................................................................................45

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The Kawasaki Heavy Industries (KHI) Group comprises some 100

companies in Japan and around the globe, together forming the

world’s leading industrial and technological business group.

Over the past century, the Group has expanded its comprehen-

sive technological base, which encompasses mastery of the land, sea,

air and space, under the guiding philosophy of deploying cutting-edge

technology to create new value in each of its business segments, and

contributing to the development of a sustainable society.

Its aerospace business offers a vast array of products ranging

from aircraft to satellites, while the shipbuilding business provides

LNG and LPG carriers, submarines and other vessels. Japan’s

Shinkansen trains and New York City’s subway cars are just two

examples of its rolling stock business’ famed global offerings, just as

gas turbines and biomass power plants headline the energy plant and

facilities business. The Group also supplies many products that

demonstrate its expertise in engineering, such as industrial plants,

environmental protection facilities, industrial equipment, construction

machinery and steel structures. The Group’s unique ability to cover

a broad range of businesses is also demonstrated by such world-

famous consumer products as Kawasaki-brand motorcycles, ATVs

and Jet Ski ® personal watercraft.

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Main Businesses and Products

Aerospace

•Aircraft

•Helicopters

• Jet engines

•Space systems

•Missiles

•Electronic equipment

•Simulators

Rolling Stock

•Electric cars (including Shinkansen

trains)

•Electric locomotives

•Diesel locomotives

•Passenger coaches and freight cars

• Integrated transit systems

•Monorails

•Platform screen door system

Shipbuilding

•LNG carriers•LPG carriers•Container ships•VLCCs (very large crude carriers)•Bulk carriers•High-speed vessels•Submarines•Offshore structures•Marine machinery and equipment

Energy Facilities

•Small and medium-sized gas turbine

generators

•Gas turbine cogeneration systems

•Combined cycle power plants

•Boilers

•Ash handling systems

•Nuclear power plant equipment

•Wind turbine generators

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Industrial Equipment

• Industrial plants

• Industrial robots

•Aerodynamic machinery

•Hydraulic equipment

Environment and Recycling

•Municipal refuse incineration plants

•Water treatment systems

• Industrial waste recycling

equipment

•Flue gas desulphurization

equipment

Infrastructure

•Wheel loaders

•Construction machinery

•Shield machines, tunnel boring

machines

•LNG and LPG tanks

•Airport and port-related products

•Snowplows

Consumer Products

•Motorcycles

•ATVs (all-terrain vehicles)

•MULE utility vehicles

• Jet Ski® personal watercraft

•General-purpose gasoline engines

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BK117 C-2 helicopter

A e r o s p a c e■ Aircraft

Kawasaki is active in a diverse range of knowledge-intensive facets of the aviation industry, and is one of

Japan’s leading aircraft and engine manufacturers.

The Company has played a major role as the prime contractor for the Ministry of Defense’s

(MOD) T-4 intermediate jet trainer and the P-3C antisubmarine warfare patrol airplane. It is now also

the prime contractor for the development of two large, next-generation aircraft, the P-X maritime

patrol airplane and the C-X transport aircraft, on which work has already begun.

Kawasaki also manufactures a variety of helicopters in a range of sizes, including the BK117, jointly

developed and manufactured with Eurocopter Deutschland GmbH of Germany. It produces the CH-47J / JA

helicopter, and developed and produces the OH-1 light observation helicopter as the prime contractor

for the MOD. Prime contractor status was granted to Kawasaki for manufacturing the

airframe and engine of the MCH-101/CH-101 helicopter used for Airborne Mine Countermeasures

(AMCM) and transportation in the Antarctic. Other initiatives include R&D on a variety of helicopters,

experimental flights of medical helicopters and research into other uses of helicopters.

In the civil aircraft business, the Company focuses much of its energy on the joint international

development and production of large passenger aircraft. It is involved in joint development and produc-

tion of the Boeing 767 and 777 with The Boeing Company of the U.S., and the Embraer 170, 175, 190

and 195 jets with the Brazilian manufacturer Empresa Brasileira de Aeronautica S.A. (Embraer).

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Medical service helicopter T-4 Blue Impulse jets

Boeing 777 passenger airplane Embraer 170 jet aircraft

OH-1 light observation helicopter

MCH-101 helicopter

Kawasaki-Boeing CH-47J / JA helicopter

As a partner in the global development and production of Boeing’supcoming 787 Dreamliner, Kawasaki is responsible for developingand manufacturing the forward fuselage section, the main landinggear wheel and the fixed trailing edge.

Playing a Key Role in Boeing 787 DreamlinerDevelopment

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V2500 turbofan engine for A320 aircraft

RTM322 turboshaft engine for MCH/CH-101 helicopters

Trent turbofan engine for the Boeing 777and the Airbus A330, A340 and A380 aircraft

T55-K-712 turboshaft engine for CH-47JAhelicopters

PW4000 turbofan engine for the Boeing747, 767 and 777, and the Airbus A300,A310 and A330 aircraft

State-of-the-Art Jet Engine Test Cell forLarge AircraftIn a class with the largest and most advanced facili-ties of its kind in the world, Kawasaki’s jet enginetest cell can be used for the development andmaintenance of jet engines with a thrust of up to100,000 lbs. At 89 m long, 14 m wide and 25 mhigh, the reinforced concrete structure is designedto suppress noise and to keep the environmentalburden to a minimum.

131-9 APU for the Boeing 737 and A320 aircraft

Participation in Trent 1000 Engine ProgramKawasaki has been participating inthe development and production ofthe Trent 1000, the latest model inRolls-Royce’s Trent engine series,which will be installed on the Boeing787 Dreamliner. Kawasaki is respon-sible for the design, production andassembly of the intermediate pres-sure compressor (IPC) drum.

■ Jet Engines

Kawasaki continues to strengthen and expand its capabilities in aircraft

engine development and production by manufacturing helicopter

engines for the MOD, and participating in the joint international devel-

opment and production of turbofan engines for such passenger aircraft

as the V2500, the RB211/Trent, the PW4000 and the CF34, and

aircraft auxiliary power units (APU).

The Company’s technological capabilities are also honed through

its participation in the research and development of an environment-

friendly small aircraft engine.

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Vehicle assembly buildingH-ⅡA rocket launch complex Courtesy of JAXA

Reusable launch vehicle Courtesy of JAXA

Automatic Landing Flight Experiment(ALFLEX) Courtesy of JAXA

Engineering Test Satellite VⅡ Courtesy of JAXA

Airship-type stratospheric platforms

H-ⅡA rocket payload fairingCourtesy of JAXA

■ Space Systems

Kawasaki’s participation in space development began with work for

NASDA, currently the Japan Aerospace Exploration Agency (JAXA),

on the N rocket launch complex, an acoustic test facility, and an

experimental geodetic satellite.

Since the 1990s, the Company has been responsible for the

development and production of the payload fairings, payload attach fit-

tings (PAF) and the construction of the launch complex for the H-Ⅱ

rocket. It continues to provide services for the H-ⅡA rocket.

Kawasaki also has experience participating in such projects as the

development of the reusable launch vehicles for spacecraft that will

handle future space transport. Space robotics projects such as the

Japanese Experiment Module for the International Space Station, the

HOPE-X experimental orbiting plane, and the docking mechanism for

the Engineering Test Satellite VⅡ (ETS-VⅡ) are other areas in which

the Company has played an important role. Currently, Kawasaki is

involved in the development of a stratospheric platform and manned

space technology, including the training of astronauts.

Proximity sensormarker

Proximity sensorhead

Docking mecha-nism handle

Docking mechanismlatch assembly

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Series E2 Shinkansen (for JR) Series 500 Shinkansen (for JR)

Series 700 Shinkansen (for JR)

R o l l i n g S t o c kKawasaki is Japan’s largest manufacturer of rolling stock. Since it began operations in the

industry in 1906, the Company has produced a succession of vehicles that have left their

mark on railway history, including the first steam locomotive made by a private company in

Japan and the first Japanese aluminum rolling stock.

As Japan’s rolling stock leader, Kawasaki deploys its aerodynamics know-how in the

development and design of such high-speed trains as Japan’s world-famous Shinkansen. It

also supplies express and commuter trains, subway cars, freight trains, locomotives, mono-

rails and new transit systems—a veritable showcase of rail transport history. The Company’s

cutting-edge technologies also support the development of a platform screen door system,

and vibration and oscillation control systems.

Kawasaki produces rail cars in the U.S. at Kawasaki Rail Car, Inc. in Yonkers,

New York. A rolling stock manufacturing plant was built in 2002 at Kawasaki Motors

Manufacturing Corp., U.S.A. in Lincoln, Nebraska, which had been only a motorcycle pro-

duction base, to handle the entire process from car body fabrication through final assembly.

With the Hyogo Works in Japan as the main factory and these two production bases in the

U.S., Kawasaki meets rising global demand for rolling stock.

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Series E231 suburban train (for JR) New York City subway car Sapporo City subway car (for Tozai Line)

Double-decker coach (in Long Island, NY) Singapore subway car Series 683 express train (for JR)

New transit system (for Kobe New Transit) Series 3000 commuter train (for NishiNippon Railroad)

Type 1000 commuter train (for KeikyuRailway)

Monorail cars (for Tama City Monorail)

700T train cars (for Taiwan High SpeedRail)

Diesel locomotive (for Japan Freight Railway) Platform screen door system

High-Speed Shinkansen Test Train FASTECH 360SKawasaki participated in the devel-opment of cars for the FASTECH360S, which aims to achieve 360km/h. The Company designed andmanufactured five of eight cars,including the first car, for the proj-ect, which was spearheaded by JREast to improve its Shinkansen service.

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S h i p b u i l d i n g■ Ships

Established in October 2002, Kawasaki Shipbuilding Corporation deploys

cutting-edge technology and expertise in shipbuilding and ship repair at its

Kobe and Sakaide Shipyards.

Its world-renowned product ranges include high-performance LNG

and LPG carriers, container ships, bulk carriers and VLCCs, as well as sub-

marines. The Company is spearheading development of offshore structures

and research vessels.

Kawasaki Shipbuilding also operates a joint venture in China with

China Ocean Shipping (Group) Company (COSCO), called Nantong

COSCO KHI Ship Engineering Co., Ltd. (NACKS). It has already built and

delivered many bulk carriers, container ships and VLCCs featuring the

latest technologies.

LNG carrier

LPG carrier

Bulk carrier

VLCC

Submarine

Vessels produced by Kawasaki Shipbuilding

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■ Marine Machinery and Equipment

Kawasaki produces a wide array of marine machinery and equipment, including

main engines, propulsion systems, steering gears, deck and fishing machinery.

The Company is proud of its UA-type marine steam turbine, which holds the

largest market share in the main engine market for LNG carriers, as well as such

other products in this sector as diesel engines, controllable pitch propellers and a

full range of propulsion systems. To reinforce the production and sale of side

thrusters and azimuth thrusters, the Company has established a Chinese joint

venture, Wuhan Kawasaki Marine Machinery Co., Ltd. in Wuhan, Hubei Province.

Another global leader in this industry, Kawasaki Precision Machinery Ltd.

(KPM), has delivered the world’s largest number of electrohydraulic marine

steering gears.

Marine steam turbine (UA type) Two-stroke marine diesel engine

Side thruster

Windlass (KPM)

KICS-5000 ship controlsystem

Controllable pitch propeller Azimuth thruster (Rexpeller)

Electrohydraulic steering gear (KPM)

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E n e r g y P l a n t s a n d Fa c i l i t i e sTo ensure that the world’s finite energy resources are used efficiently, Kawasaki focuses on two development

goals: conserving energy and developing new energy sources.

Its key offering is high-performance gas turbines that achieve high thermal efficiency and eco-friendliness.

These features make them one of the most promising prime movers for the 21st century.

A pioneer in industrial gas turbine manufacturing in Japan, Kawasaki has a broad lineup of proprietary gas

turbine generators. The 20 MW-class L20A, which it provides with cogeneration systems up to 50 MW, is an

example of Kawasaki’s recent innovations.

Aggressive efforts are also being made to develop new energy sources as an alternative to fossil fuels. The

Company takes a comprehensive approach to these new types of energy, covering all key technologies available today,

including wind power generation, biomass power generation, photovoltaic systems and rechargeable batteries.

50 MW-class combined cycle power plant equipped with the L20A gas turbine

Akashi Works Energy CenterWith energy savings and the prevention of global warming in mind,the Energy Center at Kawasaki’s Akashi Works was outfitted with adistributed heat and power supply system using Kawasaki gas tur-bines. It has two subsystems: the GPCS250 25 MW-class combinedcycle system and the GPC70PLUS 8 MW-class cogeneration system.

The GPCS250 comprises an L20A gas turbine, a waste heatrecovery boiler from Kawasaki Thermal Engineering Co., Ltd. (KTE)and a steam turbine. The GPC70PLUS comprises a M7A gas turbine,which uses steam injection to enhance power output, and a KTEboiler.

Gas turbine cogeneration system

Thermal power plant using a coal-fired Bensonboiler (K Plant)

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Sludge and RPF-fired power plant (K Plant) Kawasaki GPS Series gas turbine systems

Steam turbine for power generation Woody biomass power plant (direct fuel-fired type) (K Plant)

Fixed-bed gasification and gas engine powergeneration system using woody biomass

Soda recovery boiler (K Plant) Biomass methane fermentation unit (K Plant) Reactor core elements for a high-temperatureengineering test reactor (K Plant)

Natural gas compression module

Double-effect absorption chiller/heater (KTE)Triple-effect absorption chiller/heater (KTE)

Waste heat boiler (KTE)

Offshore wind power generation systems

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I n d u s t r i a lE q u i p m e n t■ Industrial Plants and Equipment

Kawasaki’s world-renowned technological prowess allows it to develop, manufacture and

build a vast array of industrial plants and equipment, including large cement, chemical and

nonferrous metal plants, prime movers, and compact precision machinery.

Kawasaki Plant Systems, Ltd. (K Plant), a wholly owned subsidiary of Kawasaki estab-

lished in 2005, is responsible for industrial plant engineering from design to sales. Another

company that was established in 2002, Kawasaki Precision Machinery Ltd. (KPM) manufac-

tures and sells industrial hydraulic equipment mainly for construction machinery.

The Company takes pride in satisfying customers who need ultrahigh performance,

speed and precision. With the collective strength of the Group, it is moving forward with

the development and deployment of new plant and equipment technologies.

Fluidized bed advanced cement kiln system (FAKS) (K Plant)

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Cement plant (K Plant)

Fertilizer plant (K Plant)

Top-pressure recovery turbine (TRT)power generation system

Nonferrous metal (ferronickel) processing plant (K Plant)

CK roller mill (K Plant) Hydraulic press (Kawasaki HydromechanicsCorp.)

Hydraulic equipment (KPM)

■ Automation Systems

A wide range of industry relies on automation systems for manufacturing, processing and

distribution. Kawasaki develops systems that are ideally suited for each industry, deploying

cutting-edge technology. A pioneer in the production of industrial robots in Japan, the

Company continues to be a leader in the development of robots for a diversity of

processes such as assembly, handling, welding, painting and sealing. Kawasaki robots are

shipped worldwide from production centers in Japan and the U.S.

Kawasaki also developed Friction Spot Joining (FSJ) and YAG laser welding systems

(see the facing page for details), which have contributed greatly to increased productivity in

both manufacturing and processing.

The Company provides automation systems for distribution and logistics, as well.

Achievements in this field include automated product- and

cargo-handling systems for plants and airports.

Industrial robot

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Servo Shuttle paint package cell The HCOM, an H-shaped steel drilling andcutting machine (K Plant)

Transport vehicle (K Plant)

Baggage handling system (K Plant)

Flow dynamics conveyor (FDC) (K Plant)

Cargo handling system (K Plant) Automated airplane washing system (K Plant)

Teaching-Free Robot SystemThe KCONG(Kawasaki CommonOffline NC dataGenerator) is anoffline teaching systemthat automatically gen-erates robot pro-grams (NC data)based on 3D CADdata. The systemgreatly reduces thetime and cost of teaching Kawasaki's industrial robots.

YAG Laser Welding SystemAlthough YAG laser welding delivershigh-quality welding, it conventionallyrequires high-precision positioning,and to achieve that, expensive equip-ment is used to position the laser.Kawasaki has developed a system thatprovides the required positioningaccuracy by mounting the YAG laserwelder on the wrists of industrialrobots. Thus, the process is flexibleand incurs less equipment outlay.

Friction Spot Joining (FSJ)FSJ is a revolutionarymethod developed byKawasaki to spot weldaluminum and otherlight metal alloys. Theprocess is extremelysimple. A cylindrical"gun" with a small pro-jection at the toprotates and plunges intothe material, generatingfrictional heat and creat-ing a metalurgical bondbetween the upper and lower plates. Kawasaki has developednew production systems employing the FSJ process in whichthe FSJ gun is either fixed or installed on a robot.

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E n v i r o n m e n t a n d R e c y c l i n g■ Environmental Protection Facilities

Kawasaki is committed to contributing to conservation of the global environment by devel-

oping technologies that reduce the environmental burden.

Its engineering expertise in electric power generation, steelmaking and cement has

resulted in the development of equipment that prevents pollution in a wide range of indus-

tries. Among the leading products are fuel gas desulphurization and denitrification systems,

and ash handling systems.

As the volumes of municipal and industrial waste continue to increase with economic

growth, Kawasaki’s waste-treatment solutions guarantee a reduced burden on the environ-

ment. The Company supplies municipal refuse incineration plants, gasification and melting

systems, sewage treatment and sludge incineration plants. All these plants efficiently utilize

waste heat generated during incineration and sludge produced during water treatment.

Stoker-type municipal refuse incineration plant (K Plant)

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Refuse derived fuel (RDF) power plant (K Plant)

Fluidized bed gasification and melting plantfor municipal refuse (K Plant)

Axial-flow tunnel fan

Dioxin thermal decomposition system (K Plant)

Sewage treatment plant (K Plant)

Lime/limestone-gypsum desulphurization system (K Plant)

Fluidized bed sludge incinerator

Single-stage turbo blower for wastewatertreatment facilities

Folium Photocatalyst CoatingTitanium dioxide photocatalyst eliminatesacetaldehyde, NOx and other offensive odorsand harmful substances in the air or inexhaust gases by releasing activated oxygenwhen exposed to ultraviolet rays. It also func-tions as a waterproof coating. These advan-tages are fully realized in Folium™, aphotocatalyst coating agent developed byKawasaki. Folium does not need a primer orhigh-temperature coating process; it can sim-ply be sprayed or painted on and dried in thesun to create a strong coating. The coatinghas found wide application to external wallsof buildings, guardrails, soundproofing wallsand transportation equipment.

Water drops on coated and uncoated Teflon®

Not coated with Folium

Coated with Folium

No drops form

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■ Resource Recycling Systems

Kawasaki has long considered waste to be a valuable resource, and has been developing and

introducing an array of systems that enable a wide range of municipal and industrial waste to

be recovered, recycled and put to new use.

Such innovations include refuse paper and plastic fuel (RPF) production facilities that

convert wastepaper/plastics into an easy-to-handle solid fuel, equipment that converts old

tires into highway paving materials and tiles, and machinery that sorts glass bottles by size

and color. Another Kawasaki advance is a system that pulverizes and screens waste wood,

turning it into pulp and fireboard material, or through carbonization converts it into char-

coal and soil supplements. EarthTechnica Co., Ltd., a joint venture of Kawasaki and Kobe

Steel, Ltd., is currently responsible for the manufacturing and sale of these systems.

Kawasaki has also developed refuse-derived fuel (RDF) plants which dry, crush and

solidify combustible waste, and technologies to recycle polyethylene terephthalate (PET)

bottles into PET resin, sludge into carbonized sludge and activated carbon, and many others.

RDF manufacturing plant (K Plant)

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Carbonization-activation equipment for sludge(K Plant)

Oversize waste crushing and screening plant

Bottle color separation system(EarthTechnica)

Waste plastic sorter (EarthTechnica)

Single-axis shredder(EarthTechnica)

Coal ash solidification system (K Plant)

PET bottle recycling plant (K Plant)

RPF manufacturing facility (EarthTechnica)

Revolving shredder (EarthTechnica)

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I n f r a s t r u c t u r e■ Civil Engineering and Construction Machinery

Environmental conservation, higher safety standards and increasing efficiency are just a few

of the challenges facing the civil engineering and construction fields today. Kawasaki develops

and manufactures a wide range of equipment to meet evolving requirements, ranging from

excavation to conveyance and ground preparation.

Kawasaki has demonstrated proven tunneling technology expertise both domestically

and internationally. The tunnel boring machines used to excavate the Eurotunnel and the

14.14 m diameter shield machines used in the Tokyo Bay Aqualine construction are just

two well-known examples. The Company also produces triple-slurry and reusable shield

machines, breakthroughs in cost-performance and efficiency.

For the construction industry, Kawasaki offers optimum products to meet a range of

needs, such as wheel loaders, tunnel machines, rollers, snowplows and purpose-

specific loaders.

Ultralarge wheel loader 135ZV

Tire roller

Vibratory roller

Rollers

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Detachable three-section shield machine Earth pressure-balanced shield machine usingthe Draw a Shield for Recycle (DSR) system

Superlarge-diameter shield machine

Tunnel boring machine used to excavatethe Eurotunnel

Aggregate-production plant for concrete used in dam construction(EarthTechnica)

Gyrating crusher(EarthTechnica)

Cybas Impeller (EarthTechnica)

Log loader

Farming and stockbreedingloader

Snowdozer

Dump truck for tunnel work

Rotary snowplow (NichijoManufacturing Co., Ltd.)

Load haul dump

Purpose-specific loaders

Tunnel machines

Snowplows

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■ Steel Structures

Kawasaki’s history of building steel structures spans more than a century, with bridge-build-

ing among its first businesses.

The Company has innovated a variety of storage solutions for LNG, which requires

sophisticated technology to keep it at ultralow temperature, including double-wall above-

ground tanks, inground membrane tanks and underground storage tanks.

Kawasaki’s portfolio also includes retractable roofs, floors and other giant structures,

combining a wealth of experience and a large repertoire of techniques with the latest tech-

nology to fashion new spaces and new functions. One example is the Sapporo Dome, which

uses a pneumatic floatation system to move and rotate the 8,300 ton Hovering Stage natural

grass soccer field.

Sapporo Dome Hovering Stage

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Floor-switching mechanism Steel structure Penstock

Aircraft hangar Noise reduction aircraft hangar Airport terminal building

LNG tank

New Liquid Hydrogen Container Kawasaki has developeda container for the trans-port of liquid hydrogenthat has proven effectivein a series of tests con-ducted on public roads,paving the way for thepractical use of hydrogento power automobiles.

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C o n s u m e rP r o d u c t s Kawasaki’s focus on built-to-order production gives its consumer products—motorcycles,

ATVs (all-terrain vehicles), utility vehicles, Jet Ski personal watercraft and general-purpose

gasoline engines—a unique status. Demonstrating world-class performance and distinctive

appearance, these Kawasaki-brand products are recognized and valued throughout the

world.

Kawasaki’s impressive lineup of motorcycles features the ZZR1400 and other super-

sport, sport, cruiser, dual-purpose and motocross models.

Kawasaki ATV enthusiasts hop on them just like motorcycles to get around farms and

ranches, for sport hunting, fishing and trail touring. The Kawasaki Jet Ski allows riders to

glide through the water.

General-purpose gasoline engines are used as power sources for farming and many

other types of machinery.

ZZR1400

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VN900 Classic

Ninja ZX-10R ER-6n

KX450F KVF750 4x4

KBL27A brush cutter Jet Ski STX-15F MULE 610

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M o t o r s p o r t sRacing activities

Sports facilities

Kawasaki actively participates in motorsport racesaround the world, including the FIM Road RacingWorld Championship Grand Prix - MotoGP Class andthe FIM Motocross World Championship.

■ Autopolis racing courseKawasaki owns the internationally licensed Autopolis racing cir-cuit, where it holds such events as the Super GT, Japan’s mostpopular touring car race, the All-Japan Road Race Championshipfor motorcycles, and other events such as sports driving and rid-ing for amateur drivers and riders. The circuit also enhances theCompany’s R&D efforts in the development of motorcycles.

MFJ All-Japan Road Race Championship Grand Prix(JSB1000 class)

FIM Road Racing World Championship Grand Prix (MotoGP Class)

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■ Spa Naoiri CircuitKawasaki also owns Spa Naoiri, which features an onroad course certified by theMotorcycle Federation of Japan (MFJ) andan offroad course, the AdventureWoodland Course.

Kawasaki builds its motorcycles and personal watercraft for motorsport enthusiasts.To promote continuedgrowth of this market segment, the Company provides opportunities for sports fans to view advanced ridingskills and experience riding/driving first hand. Its efforts include participation in motorsport races in Japan andoverseas, operation of sports facilities for amateur riders, and the sponsoring of races for nonprofessional riders.

FIM Motocross World Championship Jet Ski race organized by the Japan Jet Ski BoatingAssociation (JJSBA)

MFJ All Japan Motocross Championship

AMA Supercross

AMA MotocrossChampionship

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Research and Development

Kawasaki’s research and development activities pursue technological innovations that enable theCompany to create new value in key industries.

Each R&D division of its internal companies conducts product developments and enhancementsindependently. These divisions are supported by the Corporate Technology Division, the R&D hub ofthe head office, which is responsible for developing the fundamental technologies that serve as the basisfor divisional R&D efforts. The Division also spearheads its own cutting-edge R&D projects.

The Corporate Technology Division leads development efforts in such areas as materials, strength,vibration, acoustics, structure, tribology, fluid dynamics, thermal, chemical, photon and new technologies.

The Division is also where product and process innovations are pursued. As the Group’s driver ofelectronic, control and production technologies, it is committed to maximizing added value, and improv-ing quality and manufacturing productivity for the products made by each internal company.

Across the Group, Kawasaki employs a matrix management method for its R&D efforts, support-ing each product development and enhancement project—including those led by Group companies—with a task team of specialists organized by the Corporate Technology Division.

Kawasaki’s state-of-the-art products and cutting-edge technologies are the fruits of a strategicorganization that anchors each internal company’s product-specific expertise with the powerful techno-logical foundation of the Corporate Technology Division.

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❖ R&D Matrix Management

Structure, strength

Materials

Mechanical elements and tribology

Vibrations and acoustics

Fluid dynamics

Combustion and heat transfer

Chemistry, environment and energy

Photon and laser applications

Production systems

Electrical and electronic

Measurement

Control

Information

Mechanisms and mechatronics

Production

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Basic Technologies

Kawasaki conducts ongoing R&D of basic technologies, which constitute the foundation of its businesses. Theseinclude analysis and simulation of product design and production, and technologies in the areas of materials, lubri-cation, chemistry, environment, energy, photons and lasers.

Kawasaki is working toimprove the reliability anddurability of its products byconducting R&D on the mate-rials, strengths and mechanicalelements of its structures andmachines.

Structure, strength

Dynamic mechanical analysis isused to predict sliding condi-tions, load changes, vibrationsand other dynamics toenhance power, miniaturizecomponents, and reducenoise and vibrations inmachine components.

In an effort to produce eco-friendly products, Kawasakidevelops technology to ana-lyze and reduce vibrations andnoise.

Vibrations and acoustics

To ensure the quality of prod-ucts that must withstand theharshest environments, rigor-ous R&D efforts are beingmade on a wide range ofmaterials—from general-pur-pose to ultra-advanced—tomaximize performance anddurability.

Materials

Collision simulation of transport vehiclesKawasaki assesses structural strength by ana-lyzing collision/impact and collision event datato improve the anticollision performance oftransport vehicles.

Fatigue damage sensorThis metal-foil sensor, attachable to transport vehi-cles, bridges and other steel structures, assessesdamage caused by fatigue.

Thermal barriercoating for gasturbines Turbine blades coated with low thermal conductivityceramic withstand tempera-tures over 1,000 ºC.

Size and weight reduction of motorcycles Some motorcycle parts are made of low-alloy steel, and forged and machined toattain higher strength and lightness.

Predicting noiseand vibrations during liftoff Sound pressure lev-els within the fairingat a rocket’s tip aresimulated using cou-pling analysis ofvibrations andsound.

Enhancingpassengercomfort

Cutting-edge measurement technology and analysisof vibrations and sound are used to reduce vibrationand noise levels on trains.

Dynamic mechanicalanalysis of hydraulicpumps This technology enablesthe forecasting of slidingconditions, load changes,vibrations and otherdynamics.

Behavioral simulation of motorcycle enginesMechanical analysistechnology allows the

evaluation of enginestrength using

behavioral simu-lation of enginerotations.

Mechanical elements and analysis

Courtesy of JAXA

34

Research and Development

Kawasaki develops the numer-ical simulation, performancetesting and design technolo-gies required for the develop-ment and performance evalu-ation of fluid dynamics products.

Fluid dynamics

Kawasaki conducts experi-ments using the latest measur-ing technology and researchon advanced numerical simu-lations.

Combustion and heat transfer

Flow analysis of multistage axial flow compressorKawasaki established a full-stage analysis methodto accurately evaluate how blade rows interact.

Kawasaki invests in the devel-opment of the most advancedtechnologies in energy useand conversion based on itschemical engineering and elec-trochemistry expertise.

New nickel-metal hydride battery Kawasaki commercialized a large-scale nickel-metal hydride battery, Gigacell, that allowshigh-speed charging and discharging.

Simulation technology for desulphurizationplant reactions Simulations of reactions in the absorber areconducted and reflected in the design of com-pact, economical desulphurization plants.

Sloshing analysis of LNG carrier’s spherical tanks Kawasaki analyzes and evaluates the surfacebehavior of liquid inside the tanks when largefluid forces take place, and the layout of internalstructures.

Turbine

Compressor

Effects of liquid sloshing on ships

Velocity vector

Analysis of rate of combustion reaction

Combustor flow simulation For combustors,Kawasaki developedcomputational fluiddynamics (CFD) tech-nology to improvetheir combustion,exhaust gas emissionsand durability. Enhancing engine performance

CFD technology allows efficient developmentof engines and performance enhancements.

Chemistry, environment and energy

The pursuit of technologicaladvances in fields such as syn-chrotron radiation, lasers andplasma is an integral part ofKawasaki’s approach to growingbusiness through innovation.

Tunable solid-state laser in the mid-infrared region Kawasaki developed tabletop differ-ence-frequency generation (DFG)equipment for industrial applications ofits proprietary free electron laser (FEL).

Optical measurement of engines Optical measurement instruments are used to study theinternal engine workings so as to enhance engine per-formance.

Photon and laser applications

35

Systems Technologies

Kawasaki’s efforts to increase the added value of its products and to improve manufacturing productivity neverend.The Company is actively engaged in developing basic systems technologies and innovative uses of cutting-edgetechnology.These efforts encompass electrical, electronic, sensing, control, information, mechanisms/mechatronics,production and production system technologies.

Kawasaki is committed toenhancing product performanceand functionality. Advancementsare achieved through the designand production of computer-controlled equipment andpower electronics; the designand analysis of electric machinerysuch as motors and power gen-erators; and simulation technolo-gy for circuit, electromagneticfield and electrical systems.

Electrical and electronic

Continuous ventilation control equipmentKawasaki pioneered a ventilator that reducesearaches in high-speed, highly insulated trains,also incorporating energy-savings features.

Measurement technology playsa vital role in improving equip-ment performance. Objectrecognition in particular isimportant in making machinesflexible and intelligent.Nondestructive inspec-tion technology isanother importantbasic technology indis-pensable to manufacturing.Kawasaki has developed auto-matic inspection technology/equipment using ultrasonicinspection and other methods.

Measurement

Vision systemAn object recognition function hasbeen incorporated into a robot pickingsystem.

Nondestructive inspection technologyAhead of other companies in the industry, Kawasakideveloped an automated inspection system using anultrasonic inspection method to check the weldedjoints of LNG carrier spherical tanks.

Electrical system simulatorKawasaki developed integrated simulationtechnology that enables the combined simula-tion of mechanical systems such as powergenerators, and electrical and control systems.

Kawasaki provides a broadrange of transport vehicles suchas rolling stock, aircraft, motor-cycles and ships, and machin-ery. Sophisticated control tech-nology is used to enhance theirfunctionality, performance andreliability.

Control

Automated ship control systemKawasaki has put into practical use a systemthat enables the controlled navigation ofresearch vessels and barges, keeping them ondesignated routes and in specific locations.

Active suspension system for rail carsTo improve train passenger comfort by lower-ing the horizontal vibration acceleration level,Kawasaki developed active suspension systemswith electromagnetic actuators.

36

Development of various infor-mation technologies is anotherfocus of Kawasaki’s R&D activi-ties, which are deployed to digi-tize valuable data, assist in thelearning of operational processesand support decision making.

Information

Training simulatorKawasaki developed simulators that allow oper-ators to launch and shut down equipment, andprovides contingency training.

Production technology formsthe foundation for manufactur-ing. Kawasaki develops suchinnovations as welding/joiningand molding simulation tech-nologies and puts them to prac-tical use.

Production

Laser-welding technologyAt Kawasaki, high-speed laser welding thatallows very little thermal deformation hasbeen introduced to assemble side panelsof commuter trains.

Kawasaki pursues optimum pro-duction systems through theapplication of robotics technolo-gy. This includes applying sen-sors, developing peripheralequipment and offline teachingfor robots.

Production systems

Offline robotteaching systemKawasaki’srobotics tech-nology allowsPC-based sim-ulation ofrobot movements and generation of instruc-tions.

ChamferingrobotBy developinga device withthe ability tocontrol thetool force dur-ing operations,Kawasaki has

succeeded in innovating a robot system capableof performing even chamfering.

Kawasaki links mechanismdesign, modeling and simulationtechnologies to achieve higherperformance and increase theadded value of its products. Itsmechatronics technology alsoplays a key role in developingrolling stock, aircraft, motorcy-cles and industrial robots.

Mechanisms and mechatronics

Remote-controltechnology forsystems withmultiple degrees

of freedomKawasaki devel-oped a method toremotely controlsystems with multi-degrees of free-dom, such ashumanoid robots.

Artificial intelligence application Another innovation in this field is Kawasaki’sknowledge-based inference system for problemsolving, which incorporates expert knowledgeinto the computer system.

Motion analysis of motorcyclesKawasaki pioneered technology to analyze themaneuverability, stability and turning stability ofmotorcycles through research on acceleration/deceleration, steering control and shifts in riders’gravitational centers.

Research and Development

Hydroforming technologyHydroforming is a process whereby pipes are formed by axialforce and internal hydraulic pressure. Kawasaki applies thetechnology to produce swing arms for offroad motorcycles.

Swing arm

Practical application

Offroad motorcycleMoldability evaluation by simulation

37

Environmental Management Activities

In 1999, Kawasaki adopted an Environmental Charter. The philosophy guiding the Company’s environmental efforts is as follows:

As a company in key industries related to land, sea and air, Kawasaki is deploying its business activities globally inpursuit of reducing environmental impact and creating a sustainable society. This makes us to commit ourselves tocontribute to the sustainable development of society through our environmentally conscious business activities, technologies and products that preserve the global environment.

Based on that philosophy and the guidelines outlined in its Charter, Kawasaki has been implementing such measures as theintroduction of pollution-prevention equipment, improvement of its environmental management organization, establishmentof an environmental management system, reduction of waste/zero emissions activities and disclosure of environment-relat-ed information at its plants and offices.

To accelerate the development of a sustainable society, the Company continues to reinforce its environmental capabil-ities by shifting its focus from conservation efforts to environmental management, which it is implementing across all levelsof operations.

❖ Progress of Environmental Management ActivitiesThe Company’s environmental activities began in the 1970s with implementation of pollution-prevention measures. In 1994,Kawasaki launched the three-year Environmental Management Activities Plan (EMAP) on which its companywide efforts arebased.

▼ Enactment of Basic Environment Law

▼ ISO 14001 guidelines established

Enactment of Law Concerning the Promotion of Measures to Cope with Global Warming ▼

▼ Kyoto Protocol takes effect

Overview of environmental management activities

1970– 1994–1996[1st EMAP]

1997–1999[2nd EMAP]

2000–2002[3rd EMAP]

2003–2005[4th EMAP]

2006–2008[5th EMAP]

▼Enactment of Basic Law for the Promotion of a Sustainable Society

Environmental Management Activities Plan (EMAP)

Envi

ronm

enta

l Man

agem

ent

Leve

l

Pollution prevention• Installation

of pollution-prevention facilities

Building and establishing EMS• Compliance with

environmental laws and regulations

Building EMS based on ISO 14001• Energy saving/resource

conservation activities• Waste reduction activities

Environmental management activities• Zero emissions• Green procurement• LCA/product assessments• Performance evaluations• Environmental reports• Environmental accounting

Establishment of environmental management• Improvement of environmental efficiency• Implementation through major domestic

subsidiaries

Making environmental management a regular practice• Environmental management philosophy• Environmental management• Development of environmentally conscious products• Environmentally conscious production activities• Environmental communications

Establish asstandard practice

2010 Environmental Vision

38

❖ 2010 Environmental VisionIn 2003, the Company established its Environmental Vision, which outlines what the KHI Group should achieve in 2010. Tofulfill the Vision, Kawasaki is bolstering its environmental management activities by improving the environmental perform-ance of production processes and products.

❖ Environmental ReportEach year, the Company publishes an environmental report that contains a detailed overview of corporate environmentalactivities. The information is also available in the environmental activities section of its website: www.khi.co.jp/earth/english/index.html

2010 Environmental Vision

Environmentalphilosophy

Environmentalmanagement

Environmentallyconscious products

Environmentallyconscious production

Environmentalcommunications

Actions by all employees are taken with concern for the environment, not only at work, but also in their local communities and homes, in accord with our Environmental Philosophy, which declares our commitments to the realization of a sustainable society.

• Implementation of an Environmental Management System (EMS) and actions are taken based on this EMS by all employees.

• Incorporation of environmental considerations into the business management of each internal company enhances their environmental management levels.

•An environmental management information system is created.

•Design for Environment (DfE) is used for all products to enhance their environmental efficiency.•Products are offered that help protect the environment, thus contributing to the environment, society and

businesses.

•Administrative penalties and administrative provisions are avoided, and voluntary control standards based on the needs of society are established to improve environmental control levels.

•Every production activity is free of irrationality and waste to enhance the efficient utilization of resources and energies.

•The Company’s greenhouse gas emissions in 2010 are reduced by 6% relative to the 1990 level.•The Company’s total waste production in 2010 is reduced by 10% relative to the 2000 level.•Maintenance of zero emissions (recycling rate 100%) is realized in all the Company’s works.•Use of hazardous chemical substances is reduced.

•Kawasaki Environmental Reports that comply with the needs of society are published.•Communication with stakeholders is promoted.•The entire corporation and all employees are committed to environmental improvement in local

communities.

Note: The “KHI Group” on this page refers the parent company and major domestic subsidiaries.

Sanyo Shinkansen

Miki interchange

Kawasaki Thermal Engineering Co., Ltd. Shiga Works

Kawasaki Precision Machinery Ltd. Main plant

Hyogo Works

Kobe Head Office

Kobe WorksKawasaki Shipbuilding Corp. Kobe Shipyard

Seishin Works

Banshu Works

Akashi Works

Harima Works

Sapporo Office

Nichijo Manufacturing Co., Ltd. Main plant

Kakogawa Works

Nagoya Works 2

Nagoya Works 1

Osaka Office

Gifu WorksKobeHead Office

Kawasaki Shipbuilding Corp. Sakaide Shipyard

Hiroshima Sales Office

Okinawa Sales Office

Shin Kobe

Kobe

Cape Wada

Sannomiya

Akashi Kaikyo Bridge

Osaka Bay

Akashi

—Technical Institute—System Technology Development Center

Sanyo Expressway

Nishi Akashi

Sendai Sales Office

Tokyo Head Office

EarthTechnica Co., Ltd.Yachiyo Works

EarthTechnica Co., Ltd. Takasago Office

NIPPI Corp. Yokohama Plant

Nagoya Office

Fukuoka Office

Sales basesProduction basesKawasaki Machine Systems sales bases

Kakogawa

39

Domestic Production and Sales BasesOffices, research institutes, factories, branches, sales branches andmajor subsidiaries

Kawasaki’s production plants, located in the eastern, central and western regions of Japan, manufactureproducts for use on land, at sea and in the air. Marketing bases operate nationwide from Hokkaido toOkinawa. The Company has an array of sales subsidiaries, such as Kawasaki Machine Systems, Ltd., withvast marketing and service networks, particularly in the areas of construction machinery, gas turbinesand industrial robots.

40

Tokyo Head Office Kobe Head Office Technical InstituteSystem Technology DevelopmentCenter (Akashi Works)

Gifu Works (Kakamigahara, GifuPrefecture)Area: 722,000 m2

Produces: Aircraft, space equipment

Nagoya Works 1 (Yatomi, AichiPrefecture)Area: 71,000 m2

Produces: Aircraft

Nagoya Works 2 (Tobishima-mura, Aichi Prefecture)Area: 18,000 m2

Produces: Aircraft

Kobe Works (Kobe)Area: 130,000 m2

Produces: Machinery

Hyogo Works (Kobe)Area: 223,000 m2

Produces: Rolling stock and others

Akashi Works (Akashi, HyogoPrefecture)Area: 486,000 m2

Produces: Motorcycles, general-purpose gasoline engines, robots,jet engines, industrial gas turbines

Seishin Works (Kobe)Area: 100,000 m2

Produces: Jet engines

Kakogawa Works (Kakogawa,Hyogo Prefecture)Area: 51,000 m2

Produces: Aluminum wheels formotorcycles

Banshu Works (Inami-cho, HyogoPrefecture)Area: 123,000 m2

Produces: Construction machinery, loading machinery

Harima Works (Harima-cho,Hyogo Prefecture)Area: 445,000 m2

Produces: Industrial plants, envi-ronmental protection facilities,boilers, civil engineering machinery, steel structures

Kawasaki Shipbuilding Corp. Kobe Shipyard (Kobe)Area: 230,000 m2

Produces: Ships, marine machinery

Kawasaki Shipbuilding Corp.Sakaide Shipyard (Sakaide, KagawaPrefecture)Area: 911,000 m2

Produces: Ships, marine machinery

Kawasaki Precision Machinery Ltd.Main plant (Kobe)Area: 175,000 m2

Produces: Hydraulic equipment,electric/electronic devices, equipment and facilities

NIPPI Corporation Yokohama Plant (Yokohama)Area: 143,000 m2

Produces: Aircraft, space equipment

Kawasaki Thermal EngineeringCo., Ltd. Shiga Works (Kusatsu,Shiga Prefecture)Area: 130,000 m2

Produces: Air conditioning equipment, general-purpose boilers

Nichijo Manufacturing Co., Ltd.Main plant (Sapporo)Area: 31,000 m2

Produces: Snowplows

EarthTechnica Co., Ltd. Yachiyo Works (Yachiyo, Chiba Prefecture)Area: 120,000 m2

Produces: Crushers, environmental equipment

Production Bases

Manufacturing subsidiaries and affiliates

OfficesSales subsidiaries

Kawasaki Heavy Industries (Singapore) Pte. Ltd.

Kawasaki Motors (Phils.) Corporation

KHI Design & Technical Service Inc.

Kawasaki Machine SystemsKorea, Ltd.

Kawasaki Robotics (China)

Beijing Office

Kawasaki Heavy Industries Consulting & Service (Shanghai) Co., Ltd.

Wuhan Kawasaki Marine Machinery Co., Ltd. (China)

Taipei Office

Kawasaki Heavy Industries (Europe) B.V.

KHI Europe Finance B.V.

Kawasaki Motors Europe N.V. (KME)

KME Sweden Branch

KME Germany Branch

KME France BranchKME Italy Branch

KME Spain Branch

Kawasaki Robotics (UK) Ltd.KME U.K. Branch

Kawasaki Robotics G.m.b.H.

Kawasaki Gas Turbine Europe GmbH

Kawasaki Motors Enterprise (Thailand) Co., Ltd.

P.T. Kawasaki Motor Indonesia

Kawasaki Motors Pty. Ltd.

Nantong COSCO KHI Ship Engineering Co., Ltd.

Kawasaki Heavy Industries (H.K.) Ltd.

Kawasaki Heavy Industries (U.K.) Ltd.

Kawasaki Precision Machinery (U.K.) Limited

KME Benelux Branch

Moscow Office

Dehli Office

Kawasaki Gas Turbine Asia

41

Overseas Production and Sales BasesOverseas offices, major subsidiaries and affiliates

The KHI Group manufactures certain products overseas and markets them around the globe throughan extensive global network. These products include motorcycles, rolling stock, aircraft, constructionmachinery, hydraulic equipment, ships and marine machinery.

In 2002, Kawasaki set up a rolling stock production base in Nebraska, U.S.A. that is capable ofhandling the entire production process, from train car body fabrication through final assembly. Muchearlier, in 1975, Kawasaki became the first Japanese company in the motorcycle/auto industry to com-mence production in the U.S. It continues to exhibit the same pioneering spirit as it pursues overseasoperations in other segments.

Kawasaki do Brasil Indústria e Comércio Ltda.

Kawasaki Heavy Industries(U.S.A.), Inc.

Kawasaki Construction Machinery Corp.of America

Kawasaki MotorsManufacturing Corp.,U.S.A. (KMM) Lincoln Plant

Kawasaki Motors Corp., U.S.A. (KMC)

KMM Maryville Plant

Kawasaki Robotics (U.S.A.), Inc.

Kawasaki Heavy Industries (U.S.A.) Inc. Houston Branch

Kawasaki Rail Car, Inc.

Canadian Kawasaki Motors Inc.

Kawasaki Precision Machinery (U.S.A.) Inc.

KMC Grand Rapids Office

Kawasaki Robotics (U.S.A.) Inc.San Jose Office

42

Kawasaki Motors ManufacturingCorp., U.S.A. Lincoln Plant(Nebraska, U.S.A.)Area: 1,356,000 m2

Produces: ATVs, utility vehicles,motorcycles, personal watercraft,rolling stock, industrial robots

KMM Maryville Plant(Missouri, U.S.A.)Area: 460,000 m2

Produces: General-purpose gasoline engines

Kawasaki Rail Car, Inc.(New York, U.S.A.)Area: 32,000 m2

Produces: Rolling stock

Kawasaki Construction MachineryCorp. of America(Georgia, U.S.A.)Area: 77,000 m2

Produces: Construction machinery

Kawasaki Precision Machinery(U.K.) Limited(Plymouth, U.K.)Area: 68,000 m2

Produces: Hydraulic pumps andmotors, other hydraulic equipment

Nantong COSCO KHI ShipEngineering Co., Ltd.(Nantong, China)Area: 560,000 m2

Produces: Ships

Wuhan Kawasaki MarineMachinery Co., Ltd.(Wuhan, China)Area: 200,000 m2

Produces: Marine machinery

Kawasaki Motors (Phils.)Corporation(Manila, Philippines)Area: 24,000 m2

Produces: Motorcycles

Kawasaki Motors Enterprise(Thailand) Co., Ltd.(Bangkok, Thailand)Area: 150,000 m2

Produces: Motorcycles

P.T. Kawasaki Motor Indonesia(Jakarta, Indonesia)Area: 20,000 m2

Produces: Motorcycles

Production Bases

43

History

Kawasaki Dockyard Co., Ltd.

incorporated

Kawasaki Rolling Stock Manufacturing Co., Ltd. spun off

Three companies merged

Kawasaki Aircraft Co., Ltd. spun off

Kawasaki Steel Corporation

Kawasaki Kisen Kaisha Ltd.

JFE Group

Yokoyama Kogyo Co., Ltd. merged

Kisha Seizo Co., Ltd. merged

Kawasaki Tsukiji Shipyard founded

Shipping division spun off

Ironmaking division separated

1878 1896 19691919 1928 1937 1950 1966 1972

1878 Founder Shozo Kawasaki opens Kawasaki Tsukiji Shipyardto build Western-type oceangoing steel ships in Tokyo. In1886, the scale of the enterprise expands with the foundingof the Kawasaki Dockyard in Kobe.

1896 Kawasaki Dockyard Co., Ltd. is incorporated. KojiroMatsukata is appointed as the first president of the newcompany.

1906 The new Hyogo Works begins fabrication of locomotives,freight and passenger cars and bridge girders. This is alsothe year that Kawasaki begins production of marine steamturbines at its dockyard.

1918 The Aircraft Department is established atHyogo Works, a short 15 years after theWright brothers’ historic flight, when air-planes were still made from wood andcloth and could only travel short distances.In 1922, the Company begins manufactur-ing aircraft and establishes a new aircraftplant. Kawasaki goes on to build Japan’s firstmetal aircraft, which lays the groundworkfor the technological innovations of today.1919 Marine Freight Department is spun

off and incorporated as KawasakiKisen Kaisha Ltd. (K-line).

1928 Hyogo Works is spun off andincorporated as Kawasaki RollingStock Manufacturing Co., Ltd.

1937 Aircraft division is spun off andincorporated as Kawasaki AircraftCo., Ltd.

1950 Steelmaking division is spun off andKawasaki Steel Corporation isincorporated. As the Company expands, itsrolling stock, aircraft and steelmak-ing divisions are divested to pavethe way for steady growth in eachof these fields. The shipbuilding,rolling stock, aircraft, industrial andconstruction machinery and steelstructure businesses each play animportant role during the period ofpostwar restoration and economicexpansion. The Company achievesremarkable growth as Japan sets itssights on becoming a world leaderof industry.

1966 Merges with Yokoyama Kogyo Co.,Ltd., a manufacturer of boilers,grinders and conveyors.

Founder Shozo Kawasaki

1906 Builds the first submarine in Japan

1911 Completes the first steamlocomotive made by aprivate company in Japan

1922 Completes its firstairplane

1926 Constructs EitaibashiBridge, Tokyo

1933 Begins manufactureand sales ofRokkogo automo-biles

1941 Starts production of Hien fighter

1934 Delivers Pashina loco-motive for AjiagoSuper Express,Manchurian Railway

First PresidentKojiro Matsukata

44

Kawasaki Heavy Industries, Ltd.

Kawasaki Environmental Engineering, Ltd.Marged

Kawasaki Thermal Engineering Co., Ltd.

Kawasaki Shipbuilding Corporation

Kawasaki Precision Machinery Ltd.

Kawasaki Plant Systems, Ltd.

Kawasaki Heavy Industries Group

2002 2005 2006

1969 Kawasaki Dockyard, Kawasaki Rolling Stock Manufacturingand Kawasaki Aircraft merge to become Kawasaki HeavyIndustries, Ltd. With the capacity to handle projects onland, at sea and in the air, Kawasaki strengthens its founda-tion as a comprehensive systems engineering company. 1972 Merges with Kisha Seizo Co., Ltd., becoming

Japan’s leader in the rolling stock industry.Operations also expand into the field of municipalrefuse incineration. The 20th century ushers in incredible technologicaladvances. Kawasaki foresees the need to applyadvanced technologies and engineering expertiseto large-scale projects worldwide.

1975 Starts production of motorcycles in the U.S. ahead of allother Japanese motor vehicle producers. The Companyexpands U.S. production to rolling stock in 1986 and con-struction machinery in 1988.1989 Receives orders for construction work on the

Akashi Kaikyo Bridge, then the longest suspensionbridge in the world, which opens in 1998;Kawasaki’s work includes construction of one ofthe bridge’s two main towers.

1991 Two Kawasaki tunnel boring machines succeed,eight months ahead of schedule,in finishing excavation work onthe Channel Tunnel connectingthe U.K. and France.

1996 100th anniversary. 2001 Introduces an internal company system

and an executive officer system. 2002 Kawasaki Shipbuilding

Corporation and KawasakiPrecision Machinery Ltd. areestablished as wholly owned subsidiaries.

2005 Kawasaki Plant Systems, Ltd. isestablished as a wholly ownedsubsidiary.

2006 Kawasaki EnvironmentalEngineering, Ltd. is established asa wholy owned subsidiary.

2007 Kawasaki Plant Systems, Ltd. andKawasaki EnvironmentalEngineering, Ltd. are marged.

Covering an immense range of technolo-gies, the KHI Group continues to moveforward and advance its capabilities.

1969 Develops Kawasaki-Unimate2000, the first Japan-madeindustrial robot

1978 Cement plant(Algeria)

1981 Delivers the first LNG carrier built in Japan

1979 First flight of BK117helicopter

1991 Tunnel boringmachines successfullycomplete work onthe Eurotunnel

1998 Akashi Kaikyo Bridgeopens

1972 Unveils Z1 motorcycle

1976 Develops GPS200 gas turbine generator

45

Corporate Data (July 1, 2007)

Kawasaki Heavy Industries, Ltd.

www.khi.co.jp

Founded: 1878

Incorporated: 1896

Paid-in Capital: ¥103.2 billion (as of March 31, 2007)

Number of Employees: 29,211 (consolidated) (as of March 31, 2007)

Consolidated net sales: ¥1,438.6 billion (as of March 31, 2007)

Number of consolidated subsidiaries: 96 (as of March 31, 2007)

Tokyo Head Office: World Trade Center Bldg., 4-1, Hamamatsu-cho 2-chome,

Minato-ku, Tokyo 105-6116, Japan

Phone: 81-3-3435-2111

Fax: 81-3-3436-3037

Kobe Head Office: Kobe Crystal Tower, 1-3, Higashikawasaki-cho 1-chome,

Chuo-ku, Kobe, Hyogo 650-8680, Japan

Phone: 81-78-371-9530

Fax: 81-78-371-9568

Domestic Offices and Factories: Tokyo Head Office

Kobe Head Office

Technical Institute

System Technology Development Center

Sapporo Office

Nagoya Office

Osaka Office

Fukuoka Office

Sendai Sales Office

Hiroshima Sales Office

Okinawa Sales Office

Gifu Works

Nagoya Works 1

Nagoya Works 2

Kobe Works

Hyogo Works

Akashi Works

Seishin Works

Kakogawa Works

Banshu Works

Harima Works

Overseas Offices: Beijing Office

Taipei Office

Delhi Office

Moscow Office

46

Aerospace

NIPPI Corporation

Kawaju Gifu Engineering Co., Ltd.

KGM (Kawaju Gifu Manufacturing) Co., Ltd.

Rolling Stock

Alna Yusoki-yohin Co., Ltd.

Kawasaki Rolling Stock Component Co., Ltd.

Kawasaki Rolling Stock Technology Co., Ltd.

Sapporo Kawasaki Rolling Stock Engineering Co., Ltd.

Kawasaki Motors Manufacturing Corp., U.S.A.

Kawasaki Rail Car, Inc.

Shipbuilding

Kawasaki Shipbuilding Corporation

Kawasaki Naval Engine Service, Ltd.

Nantong COSCO KHI Ship Engineering Co., Ltd.

Wuhan Kawasaki Marine Machinery Co., Ltd.

Kawasaki Heavy Industries (H.K.) Ltd.

Kawasaki Heavy Industries (Europe) B.V.

Energy Plants and Facilities

Kawasaki Thermal Engineering Co., Ltd.

Kawasaki Machine Systems, Ltd.

Kawaju Akashi Engineering Co., Ltd.

Kawasaki Gas Turbine Europe GmbH

Kawasaki Gas Turbine Asia Sdn Bhd

Kawasaki Heavy Industries (Europe) B.V.

Industrial Equipment

Kawasaki Plant Systems, Ltd.

Kawasaki Precision Machinery Ltd.

Kawasaki Machine Systems, Ltd.

Kawasaki Metal Industries, Ltd.

Kawasaki Engineering Co., Ltd.

Kawasaki Prime Mover Engineering Co., Ltd.

JP Steel Plantech Co.

Kawasaki Precision Machinery (U.K.) Limited

Kawasaki Precision Machinery (U.S.A.) Inc.

Kawasaki Robotics (UK) Ltd.

Kawasaki Machine Systems Korea, Ltd.

Kawasaki Robotics (U.S.A.), Inc.

Kawasaki Robotics (China) Ltd.

Kawasaki Robotics G.m.b.H.

Kawasaki Heavy Industries (Europe) B.V.

Kawasaki Design & Technical Service Inc.

Environment and Recycling

Kawasaki Plant Systems Ltd.

KEE Environmental Service, Ltd.

KEE Environmental Construction Co., Ltd.

EarthTechnica Co., Ltd.

Infrastructure

Nichijo Manufacturing Co., Ltd.

Kawasaki Machine Systems, Ltd.

Kawasaki Construction Co., Ltd.

Kawaju Facilitech Co., Ltd.

Kawasaki Construction Machinery Corp. of

America

Consumer Products

Kawasaki Motors Corporation Japan

K-GES Co., Ltd.

K-Tec Corp.

Kawasaki Oita Manufacturing Co., Ltd.

Union Precision Die Co., Ltd.

Kawasaki Motors Manufacturing Corp., USA

Kawasaki Motors Corp., USA

Kawasaki Motors Enterprise (Thailand) Co., Ltd.

P.T. Kawasaki Motor Indonesia

Kawasaki Motors Europe N.V.

Kawasaki Motors (Phils.) Corporation

Canadian Kawasaki Motors Inc.

Kawasaki Motors Pty. Ltd.

Other

Kawaju Shoji Co., Ltd.

Kawasaki Hydromechanics Corp.

Kawasaki Life Corporation

Kawaju Techno Service Corp.

Benic Solution Corp.

Kawaju Tokyo Service Corp.

Kawaju Gifu Service Co., Ltd.

Kawaju Akashi Service Co., Ltd.

K Career Partners Corp.

Kawaju Finance Co., Ltd.

Kawasaki Heavy Industries (Singapore) Pte. Ltd.

Kawasaki Heavy Industries (U.K.) Ltd.

KHI Europe Finance B.V.

Kawasaki do Brasil Indústria e Comércio Ltda.

Kawasaki Heavy Industries (U.S.A.) Inc.

KHI (Dalian) Computer Technology Co., Ltd.

Kawasaki Heavy Industries Consulting & Service

(Shanghai) Co., Ltd.

Major Subsidiaries and Affiliates

www.khi.co.jp

Printed on recycled paper with soy ink Cat. No. 1A0158 Sept. ’07 Printed in Japan F