Hitachi Construction Machinery Adapting to Increased Demand by Enhancing Its Production Facility Capacity for Compact Products
Relocate and expand the functionality of the product test site with the goal of advancing product development
Tokyo, April 21, 2022 –Hitachi Construction Machinery Co., Ltd. (TSE: 6305 President and Executive Officer: Kotaro Hirano, “Hitachi Construction Machinery”) will increase the production facility capacity for compact products such as mini excavators and mini wheel loaders produced at the Shiga Works of its consolidated subsidiary, Hitachi Construction Machinery Tierra Co., Ltd. (President and Executive Officer: Kazuhiro Ichimura), by approximately 30% by FY 2025 (based on the total number of machines compared to FY 2021). Moreover, due to the production line enhancement, Hitachi Construction Machinery Tierra plans to utilize the product test site, which is being functionally enhanced and relocated to an adjacent site, from FY 2024 with the goal of advanced development of compact products including electric construction machinery.
Recently, the demand for compact products has been increasing in North America and Europe with the economic recovery due to the easing of COVID-19 restrictions. In particular, demand for product supply is expected due to steady growth in the number of housing starts in the North American market where Hitachi Construction Machinery started its full-scale business expansion in March 2022. Furthermore, the demand for electric construction machinery is increasing in the European market from the perspective of environmental responsiveness, and the company is expanding its lineup of battery-powered products. Orders for the 5-tonne class ZX55U-6EB battery-powered mini excavator are scheduled to start in June 2022. In order to adapt to such increases in demand going forward, Hitachi Construction Machinery Tierra decided to increase the production facility capacity of the Shiga Works.
Because compact products are often used to handle work which replaces manpower and frequently operate in urban areas, there is a growing need for high functionality and electrification which requires more advanced development testing. To respond to this growing need, it was decided that the product test site will be relocated near the Shiga Works, and its functionality will be expanded. In addition to an expansion of environment-resistant testing equipment, starting from FY 2024 Hitachi Construction Machinery Tierra will become able to conduct various tests such as mini excavator excavating tests and mini wheel loader running tests including electric construction equipment, structural rigidity tests, and other tests, at a site approximately twice the size of our previous site.
Going forward, the Hitachi Construction Machinery Group will continue to help resolve the customer issues of “improving safety,” “improving productivity,” and “reducing lifecycle costs” as a close and reliable partner.
|Test site overview|
|Location||6 Hinokigaoka, Minakuchicho, Koka-shi, Shiga Prefecture (within the Hinokigaoka Industrial Park)|
|Site area||approximately 18,400 square meters|
|Scheduled start of construction||June 2022|
|Scheduled start of operation||April 2024|
About Hitachi Construction Machinery Co., Ltd.
Hitachi Construction Machinery Co., Ltd. (TSE: 6305), headquartered in Tokyo, Japan, is a construction machinery manufacturer. The company engages in the development, manufacturing, sales, and service operations around the world for hydraulic excavators, wheel loaders, road construction machines, and mining machinery. Hitachi Construction Machinery is strengthening its focus on value chain businesses other than new machinery sales, such as parts and services, rentals, used equipment, and parts recycling, and is utilizing digital technologies to provide deeper solutions at all points of contact with customers. Hitachi Construction Machinery employs approximately 25,000 people worldwide. In fiscal year 2020 (ended March 2021), the consolidated sales revenue was ¥813.3 billion and the percentage of overseas sales revenue was approximately 75%. For details, visit the company’s website.
Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.