Tokyo, Japan July 20, 2020 —-Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) announced that the company recently reorganized their brand classifications of aftermarket parts by coordinating the Parts and Service business and the Parts Remanufacturing business. The new brand classifications will be used by all Hitachi Construction Machinery Group companies throughout the world. We have established a global parts supply channel to supply quality parts with Hitachi Construction Machinery warranty under three different brands to meet the different needs of customers.

The brands are classified into three categories, “Genuine Parts,” “Hitachi Construction Machinery Selected Parts,” hereinafter called SELECTED PARTS, which are industry standard alternative by suppliers certified by Hitachi Construction Machinery, and “Remanufactured Parts,” which are rebuilt from used parts. Customers are able to select parts from the three brands, which best meet each machine’s job application, future plan and budgetary needs. Hitachi Construction Machinery plans to start supplying parts under the new brand classifications in January 2021.

1. Genuine Parts (Hitachi Construction Machinery Genuine Parts)
   These are identical to those used on brand-new machines and meet the quality assurance standard of the Hitachi Construction Machinery Group. The warranty term is 12 months from the date of part installation or purchase.
   
   
2. SELECTED PARTS (Hitachi Construction Machinery Selected Parts)
   Parts branded as SELECTED PARTS are industry standard alternative produced by the suppliers certified by Hitachi Construction Machinery. These are supplied by the certified suppliers at a lower cost and come with the same warranty as Genuine Parts. A full lineup of undercarriage parts (shoes, rollers, etc.) and ground engaging tools (GET) are available for mini, medium and large-sized excavators^*1.
   
   
3. Remanufactured Parts (Hitachi Construction Machinery Remanufactured)
   Parts Remanufacturing business operates globally^*2, in which used components such as hydraulic pumps, hydraulic cylinders, travel devices, etc. are collected, disassembled and reconditioned at the remanufacturing plants of Hitachi Construction Machinery Group. The parts are rebuilt to Hitachi specifications and come with the same warranty as Genuine Parts at a 50 to 70% of the cost of Genuine Parts. We have been further developing new technologies to determine the remaining life and reusability of parts to give assurance to customers for continual usage of their machines. Through the Parts Remanufacturing business, we will continue to contribute to reducing environmental footprint, including curbing CO2 emissions*³, and creating a circulation-type society by reducing industrial wastes*⁴.

Hitachi Construction Machinery Group has positioned the Parts and Service business and the Parts Remanufacturing business, rental and used machines business, and others as components of the total value chain and striven to broaden our business base and stabilize our business foundation. We will continue to deepen and expand our value chain and contribute to lowering the “life cycle cost” of machines, which is an important consideration for our customers.

*1: SELECTED PARTS exclude mining equipment such as ultra-large hydraulic excavators (120-ton class or more) and rigid dump trucks.
*2: Remanufactured parts exclude mining equipment in North, Central and South America, such as ultra-large hydraulic excavators (120-ton class or more) and rigid dump trucks.
*3: Approximately 19,000 tons of CO2 emissions were avoided in 2019. (Calculated from the amount of industrial wastes reduction and the National Institute of Advanced Industrial Science and Technology (AIST) database)
*4: Hitachi Construction Machinery reduced the amount of industrial wastes by approximately 7,700 tons in 2019 through all products handled.