Review of Business Structure in China Accompanies Transfer of Capital
Tokyo, September 20, 2022 –With the transfer of capital carried out on August 23, 2022, Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) today announced that the company is reviewing the capital structure of Hitachi Construction Machinery (Shanghai) Co., Ltd. (headquarters: Free Trade Zone Pu Dong New District, Shanghai; Managing Director: Tei Gyomei; “Hitachi Construction Machinery (Shanghai)”) in which other companies including Hitachi Group have invested, while at the same time reviewing its business structure in the People’s Republic of China (“China”). As a result, Hitachi Construction Machinery has decided to establish Hitachi Construction Machinery Distribution (China) Co., Ltd. (headquarters: Shanghai Free Trade Zone, Pu Dong New District; Managing Director: Tei Gyomei; “Hitachi Construction Machinery Distribution (China)”) to manage sales and service in China, with business activities due to commence on November 1, 2022.
In August 2022, 26.0% of Hitachi Construction Machinery’s common stocks held by Hitachi Ltd. (headquarters: Chiyoda-ku, Tokyo; Executive Officer, President & CEO: Keiji Kojima) were transferred to HCJI Holdings Ltd., whose interests are wholly owned by Japan Industrial Partners, Inc. (headquarters: Chiyoda-ku, Tokyo; Chief Executive Officer: Hidemi Moue) and ITOCHU Corporation (headquarters: Minato-ku, Tokyo; Representative Director and President & COO : Keita Ishii). As a result of the share transfer, HCJI Holdings Ltd. became Hitachi Construction Machinery’s largest shareholder.
With this capital transfer, Hitachi Construction Machinery aims to restructure and strengthen the group’s business structure in China.
More precisely, part of Hitachi Construction Machinery (Shanghai)’s business will be undertaken by Hitachi Construction Machinery Distribution (China) which will handle an extensive lineup of our products not only from the Construction and Compact Business Units but also from the Mining Business Unit, while providing integrated sales and service.
Under the “Realizing Tomorrow’s Opportunities 2022” medium-term management plan, Hitachi Construction Machinery Group is working to strengthen its value chain business, provide enhanced solutions and build a corporate structure that is resilient to change.
Since agreeing in August 2021 to terminate the joint venture relationship with Deere & Company (headquarters: Moline, Illinois, USA; Chairman of the Board and CEO: John C. May) in North, Central and South America, Hitachi Construction Machinery has been working with every member of the group to achieve the aims of the medium-term management plan across the Americas through its own sales and service network.
The establishment of this sales and service company in China and its partial assumption of business forms part of our efforts to strengthen our global business. Going forward, we will promote these management strategies across the globe in pursuit of stable growth.