Hitachi Construction Machinery Establishes New Company Aimed at Entry into UK Rental Market and Strengthening of Value Chain
Tokyo, Japan January 24, 2019—- Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) today announced that it, in an effort to achieve the “CONNECT TOGETHER 2019” mid-term management plan currently being implemented, has established a new company, Synergy Hire Limited. (“Synergy Hire”), to carry out rental business in the United Kingdom market, with the aim of adding further depth to its value chain.
Until now, new machinery sales and service have been provided by Hitachi Construction Machinery (UK) Ltd., earning high acclaim in the market with hydraulic excavators. With this latest decision, Hitachi Construction Machinery aims to further growth its business in the United Kingdom market by entering the construction machinery rental business, based on the high level of trust that it has cultivated among customers through its business.
Specifically, Synergy Hire, as a 100% subsidiary of Hitachi Construction Machinery Group will implement rental business, hiring hydraulic excavators and other Hitachi brand construction machinery to customers.
Synergy Hire will be able to offer customers a wide range of choice to suit their business by providing rental equipment in addition to new machinery, thus enhancing customer satisfaction while at the same time expanding our business.
Hitachi Construction Machinery is pursuing a wide variety of efforts aimed at adding depth to our value chain , including the aftermarket business following new equipment sales, which is set as the most important initiative in the “CONNECT TOGETHER 2019” mid-term management plan that is currently being implemented. In the machinery rental business too, capital investment in 2018 in ACME Lift Company, which runs re-rental business in the United States, is the one of such effort aimed at achieving a value chain ratio of 50% of consolidated sales revenue by the end of fiscal year of 2019.
Hitachi Construction Machinery plans to steadily promote global expansion of its rental business while accelerating the strengthening of its value chain.
Hitachi Construction Machinery Group has pursued efforts as a familiar and trusted partner to provide “Reliable Solutions” that resolve social issues. In the rental business too, Hitachi Construction Machinery Group aims to expand its provision of high-quality rental machinery to customers across the globe and contribute to solving the issues facing customers in their business.
Outline of new company
- Company name : Synergy Hire Limited.
- Head office location : London, United Kingdom
- Business activities : Renting of construction machinery in the United Kingdom
- Scheduled commencement of renting : April, 2019
- Representative : John Fitzpatrick
- Capital : 1 GBP (approximately. 150 JPY)
- Number of employees : Approximately.10
- Capital contribution : Hitachi Construction Machinery Group 100%
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.