What is Hitachi Construction Machinery’s Remanufacturing Business?
Hitachi Construction Machinery’s remanufacturing business boasts a proud history spanning more than half a century. Michio Sugawara leads efforts to advance this business at the Banshu Works (Hyogo Prefecture), where our remanufacturing operations were consolidated in 2024. He shares insights into the scope of these initiatives, the value they bring to customers, and their significance from a resource-circulation perspective.
Michio Sugawara
General Manager, Remanufacturing Division, Spare Parts & Service Business Unit
The remanufacturing business began as an initiative to ensure that machinery repairs would not disrupt customers’ operations. By processing and repairing used parts and maintaining them in a reusable condition, we have significantly reduced lead times for part replacements. For customers, choosing remanufactured parts offers multiple benefits: they come with warranties equivalent to new parts while being more cost-effective, and they minimize machine downtime during part replacement. Furthermore, replacing parts before they fail extends the operational lifespan of machinery. While customers can select either new or remanufactured parts based on their needs, we have observed a significant preference for remanufactured options. This trend is fueled by increased awareness of environmental conservation and at their construction sites. By using remanufactured parts, customers can reduce CO2 emissions, lower their environmental impact, and contribute to the realization of a circular society. Although we started this initiative to improve customer satisfaction, we believe that these societal and other factors will further increase demand for this service. Some remanufactured parts even complete their role and then undergo a second remanufacturing cycle. In Japan, more than 90% of remanufactured parts are returned for another cycle, a testament to our contribution to resource circulation.
Initially, the remanufacturing business was conducted at the Tsuchiura Works and the Hitachinaka Works, both located in Ibaraki Prefecture. However, due to the time required to transport components between these two facilities and the increased production driven by rising needs, operations were consolidated at the Banshu Works (located in Kakogun, Hyogo Prefecture) in October 2024. This location offers several advantages, including proximity to numerous suppliers, which allows us to increase technical exchange with them. The Banshu Works will serve as the base for expanding the remanufacturing business through improvements in technology and skills, an enhanced product lineup, and strengthened global operations. By 2030, we aim to increase sales by 1.5 times.
| What is PU? |
PU stands for Preventive Unit. These remanufactured parts are identified by the “PU” suffix added to their part numbers. Currently most of them are cylinders, pumps, and motors, but we also remanufacture engines and cab glass. Hitachi Construction Machinery’s highly reliable remanufactured parts are well-regarded by customers both in Japan and overseas.
| Milestones in Hitachi Construction Machinery’s Remanufacturing Business |
| 1966 | Established the Preventive Unit (PU) service. |
| 1971 | Began operating seven service factories in Japan as parts remanufacturing facilities. |
| 1998 | Founded the Remanufacturing Section within the Machinery Division. |
| 1999 | Launched the remanufacturing of in-house hydraulic pumps and motors as PU parts at the Tsuchiura Works’ Machinery Division. Started parts remanufacturing business at Hexindo Adiperkasa in Indonesia. |
| 2000 | Added hydraulic cylinders and engines to the lineup of PU parts. |
| 2001 | Initiated the remanufacturing of engine assemblies and auxiliary components in collaboration with partner companies. Established a system to supply all remanufactured engine parts from the parts center to the service departments. Began parts remanufacturing business at Hitachi Construction Machinery (Australia). |
| 2003 | Launched parts remanufacturing operations at Hitachi Construction Machinery (Shanghai) [now Hitachi Construction Machinery Distribution (China) ]. |
| 2005 | Established a Remanufacturing Center at the Tsuchiura Works’ Machinery Division and Service Department. Consolidated inventory according to the Service Department policy at the Remanufacturing Center and transferred inventory management and shipping tasks for remanufactured parts to the Parts Center. Enabled part orders through the same channels as from the business bases. |
| 2012 | Started parts remanufacturing business at Hitachi Construction Machinery Zambia. |
| 2017 | Launched the remanufacturing business for muffler filters. Introduced cylinder remanufacturing facilities for ultra-large machines at the Hitachinaka Works, enabling the remanufacturing of all cylinder classes in Japan, from small and medium machines to the EX8000. Accelerated the globalization of the remanufacturing business. |
| 2018 | Received the Director-General’s Award from the Ministry of Economy, Trade and Industry’s Industrial Science and Technology Policy for Resource Circulation Technology and System Award and Environment Bureau, and the President’s Award from the 3R (Reduce, Reuse, Recycle) Promotion Council. Began remanufacturing operations at Tata Hitachi Construction Machinery. |
| 2020 | Expanded the remanufacturing factory at the Hitachinaka Works and increased production volume and product lineup to meet growing global demand for remanufactured parts. |
| 2021 | Started remanufacturing business at Hitachi Construction Machinery Indonesia. |
| 2022 | Restructured the Remanufacturing Promotion Department into the Remanufacturing Division. Began remanufacturing business at Hitachi Construction Machinery Southern Africa. |
| 2023 | Launched remanufacturing operations at Hitachi Construction Truck Manufacturing. |
| 2024 | Consolidated and integrated remanufacturing facilities from the Tsuchiura and Hitachinaka Works at the Banshu Works, commencing operations. |
Text by Toshiaki Saito
Photography by Shinya Kojima
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