Due to an increase in worldwide demand for construction machinery, we were considering the restructuring of our production sites, including new plants, to upgrade their ability to produce mid-size and large hydraulic excavators, streamline production, as well as to economize and improve the painting environment and quality.
Producing mining excavators and dump trucks at a plant nearby a port will enable Hitachi to reduce costs such as parts purchase, product transportation and logistics. In this regard, we have been negotiating with Ibaraki prefecture, with the intent of purchasing land reserved for Hitachinaka port expansion. We recently reached an agreement regarding most of the conditions and have decided to embark on the construction of a new factory.
Since the production division of mining excavators will transfer to the new factory, the main Tsuchiura factory will be able to concentrate on production of middle and large size hydraulic excavators.