Hitachi Construction Truck Manufacturing Embarks on Full-Scale Production of Dump Trucks in the Americas Market
Establishing a local production and service framework for dump trucks in the Americas market to accelerate independent business expansion
Tokyo, March 28, 2024 –Hitachi Construction Machinery Co., Ltd. (TSE: 6305, President and Executive Officer: Masafumi Senzaki; “Hitachi Construction Machinery”) decided to begin full-scale production of dump trucks in fiscal year 2026, with Hitachi Construction Truck Manufacturing Ltd. (Head Office: Ontario, Canada; Managing Director: Yoshiya Hamamachi; “Hitachi Construction Truck Manufacturing”), Hitachi Construction Machinery’s wholly-owned subsidiary currently responsible for the production and remanufacturing of dump truck maintenance and service parts. This will establish a local production and service framework for dump trucks in the Americas market.
Since March 2022, the Hitachi Construction Machinery Group has embarked on independent business expansions, ranging from new machine sales to value chain business,*1 through the Hitachi Construction Machinery group network across the Americas. This decision is in response to the strong demand in the Americas market. By developing a local production and service framework for dump trucks, we can quickly accommodate local market needs. Hitachi Construction Machinery hopes to accelerate independent business expansion while increasing the local procurement rate.
*1: Businesses other than new vehicle sales, such as parts and services, solutions business, and rental and used equipment.
The Americas (North, Central & South America) account for approximately 40%*2 of the global dump trucks over 150 tons market. Copper, iron ore, and gold―hard rocks for which demand is expected to keep rising in the future―are mined in large volumes in South America. The Hitachi Construction Machinery Group has been producing dump trucks at the Hitachinaka-Rinko Works in Hitachinaka, Ibaraki Prefecture, and delivering them to the world. Now, with local production of dump trucks in Canada, transportation time will be shortened, and the Americas market can be quickly supplied with products that match our customers’ needs.
For dump trucks produced in Canada, mainframes, welding structures, and components such as engines and radiators will be locally sourced to improve the local procurement rate. Other key components will be imported from Japan to ensure the same level of reliability as dump trucks produced in Japan. Engineers, including designers, will be present at Hitachi Construction Truck Manufacturing to flexibly deal with specification changes on individual dump trucks and deliver quality products and services that cater to customers’ needs.
*2: Based on Parker Bay statistics (fiscal year 2010- fiscal year 2022 demand unit total)
Hitachi Construction Truck Manufacturing’s predecessor, Euclid-Hitachi Heavy Equipment Ltd., was acquired by Hitachi Construction Machinery in 1988. It halted the production of dump trucks in fiscal year 2018 to focus on producing service parts for delivered dump trucks and remanufacturing parts for ultra-large hydraulic excavators and dump trucks. Toward the start of full-scale production of dump trucks in fiscal year 2026, staff is expected to double the current size as part of our efforts to strengthen the production system.
“BUILDING THE FUTURE 2025,” the Hitachi Construction Machinery Group’s medium-term management plan that started in fiscal year 2023, includes “expanding business in the Americas” among the four core strategies. In line with this purpose, Hitachi Construction Machinery aims to achieve a revenue of over 300 billion JPY in fiscal year 2025 from independent business expansion in the Americas alone.
Overview of Hitachi Construction Truck Manufacturing Ltd.
| Location | 200 Woodlawn Road West, Guelph, Ontario N1H 1B6, Canada Guelph, Ontario, Canada |
| Representative | Managing Director: Yoshiya Hamamachi * Ikuo Kishida is planned to take the post of Managing Director as of April 1, 2024. |
| Year established | 2004 |
| Area | Land 111,000m2、Buildings 36,000m2 |
| Investment | 95 million JPY |
| Business activities | Manufacturing of 150+ tons dump trucks for the Americas market, production of service parts, and remanufacturing parts for ultra-large hydraulic excavators and dump trucks |
| Number of employees | Approx. 100 (as of February 2024) * Planned to increase the number of employees to approx. 200 by fiscal 2026. |
About Hitachi Construction Machinery Co., Ltd.
Hitachi Construction Machinery Co., Ltd. (TSE: 6305), headquartered in Tokyo, Japan, is a construction machinery manufacturer which globally deploys development, manufacturing, sales, and service businesses for its hydraulic excavators, wheel loaders, compaction equipment, and mining machinery, etc. In addition to its new machinery business, Hitachi Construction Machinery is expanding its "value chain businesses" of parts and services, remanufacturing (parts and machines), rentals, and used equipment as it aims to grow together with customers as a true solutions provider that offers innovative solutions to customers. With roughly 25,000 employees around the world, the consolidated sales revenue for Hitachi Construction Machinery was ¥1,279.5 billion for fiscal year 2022 (ended March 2023) with an overseas sales revenue ratio of 82%. For more details, please see 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.
