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The Hitachi Construction Machinery Group is a construction machinery manufacturer that is globally expanding its business primarily in the hydraulic excavator, wheel loader, and mining machinery fields. Guided by the vision of "Ensure a prosperous land and society for the future; we contribute toward realizing a safe and sustainable society" and the mission of "Meet expectations from customers, co-create innovative products, services, solutions and together, we continue to create new values," we have continued to grow.
Construction machinery cultivates the earth, builds roads, and lays the water pipes which carry clean water to develop countries and regions around the world and enrich the lives of the people who live there. Moreover, when a disaster occurs, it contributes to the recovery efforts. Mining machinery excavates and transports the minerals which are necessary for people's lifestyles and the global economy. The vision of "Ensure a prosperous land and society for the future" truly forms the basis of the corporate activities of the Hitachi Construction Machinery Group and is the reason for its existence.
Currently, the business environment surrounding the Hitachi Construction Machinery Group is significantly changing. Until now, construction machinery manufacturers were required to develop, manufacture, and sell high-performance and high-quality construction machinery. Against a backdrop of changes such as the decreasing birthrate and aging population, the shift from machinery ownership to usage, and the advances in digital technologies in recent years, proposals for operation methods across the entire construction machinery lifecycle are being sought, and manufacturers are expected to provide the optimal solution to solve the customer issues of improving safety, improving productivity, and reducing lifecycle costs.
Moreover, as the world confronts the problem of climate change, the Hitachi Construction Machinery Group is extending the product lifecycle through the expansion of the value chain business such as the provision of parts and services utilizing ICT and IoT, remanufacturing of used parts and machinery, rental and used equipment including, of course, the consideration of the environmental load in our product manufacturing processes and the expansion of our environmentally conscious products which contribute to the realization of carbon neutrality, and we will balance the maximization of the value provided to customers and our commitment to the circular economy aimed at the realization of a safe and sustainable society.
Even under such significant changes, we hope to continue to provide solutions with social, environmental, and economic value to various customers around the world through open innovation that leverages the technologies of our global partners in addition to the in-house technologies which we have cultivated to date.
I hope you will share my excitement about the future developments of the Hitachi Construction Machinery Group, and I appreciate your kind support.
Hitachi Construction Machinery has a history of over 70 years since the start of mass production of its cable-operated shovel in 1950.
At the time, Japan was grappling with the urgent social task of having to make construction work more efficient through mechanization in order to rebuild the country and revitalize our economy. To address this need, the construction machinery division of Hitachi, Ltd., the predecessor of Hitachi Construction Machinery Co., Ltd. developed Japan's first cable-operated shovel using entirely from domestic technology and started mass production.
Since then, we have been developing construction machinery while staying close to the job sites and the people who work there, and facing the social issues that change with each era and region.
In the course of that history, 2022 marked two significant changes in the management environment to further strengthen the corporate strategy and ensure our reliable growth as a company which consisted of a "change in the largest shareholder" that welcomed a new shareholder partner and the "start of a full-scale independent business in the markets of the Americas" through the dissolution of a long-standing business partnership.
Under the "BUILDING THE FUTURE 2025" medium-term management plan started in April 2023, we are aiming to grow as a "solutions provider" by focusing on the provision of innovative customer-oriented solutions, the expansion of the value chain business consisting of parts and services, remanufacturing of used parts and machinery, and rental and used equipment that we have promoted thus far, the extension of our global business centered around the expansion of the Americas business that has newly opened a huge door, and the enhancement of human resources and corporate strength, as the pillars of our management strategy. Moreover, due to the serious and urgent issue of climate change in the world, we are strengthening our efforts for the circular economy and carbon neutrality to contribute to the realization of a safe and sustainable society.
The Hitachi Construction Machinery Group has a code of conduct called the "Kenkijin Spirit" which is shared by all of our employees around the world. We have set forth the "three Cs" of "Challenge," "Customer," and "Communication" as the underlying ideology of the Kenkijin Spirit, and this reflects our ongoing wish to become a close and reliable partner who solves issues together with our customers.
Going forward, all of our employees around the world will take this "Kenkijin Spirit" to heart, as we continue striving to grow as a "solutions provider".
