Hitachi Construction Machinery

Global

CSV Theme 3 Contribution to community development

With operations around the world, the HCM Group interacts with a wide variety of local communities. In order for a company to continually grow, it must be committed to growing together with each of the communities where it operates while being mindful of the local culture. The HCM Group is aiming to realize a sustainable society through activities that capitalize on the unique nature of its business operations for the growth of both communities and the Group.

Targets

  • Support the self-reliance of emerging countries through infrastructure development
  • Create jobs in the local community through the parts remanufacturing business
  • Support environmental activities in the local community

Key Initiatives

  • Develop machinery and human resources that meet regional requirements
  • Support the development of overall community infrastructure utilized Hitachi Group integrated capability
  • Provide financing and machinery to support infrastructure development

Progress of main activities in FY2017

Build urban public works infrastructure The development of high quality social infrastructure in emerging countries is vital for achieving sustainable economy development. The HCM Group is contributing to sustainable cities and living spaces by providing various forms of ongoing assistance, in addition to supplying construction machinery used to make infrastructure. GOAL11
Create local employment opportunities According to a study by the International Labor Organization (ILO), the number of unemployed worldwide stood at 201 million people*(as of 2017). The HCM Group is contributing to the creation of local employment by actively hiring local people for its parts remanufacturing plants in 12 locations around the world.

* Source: The future of work – ILO

GOAL8
Energize global partnerships Innovation driven by global partnerships must be energized in order to achieve a sustainable society. HCM is now accelerating initiatives by harnessing the collective strengths of the Hitachi Group and by further reinforcing partnerships with outside institutions. GOAL17

Future initiatives

In FY2017, we worked on developing human resources in local communities with the goal of growing our businesses together with communities. These initiatives included participation in the Manufacturing Skill Transfer Promotion Program being implemented through a public-private partnership involving Japan and India. Looking ahead, we will further strengthen partnerships with various stakeholders around the world and engage in activities that contribute to community development.

Participation in the Manufacturing Technology Transfer Promotion Program in India

The Manufacturing Technology Transfer Promotion Program supports the Government of India’s manufacturing industry initiatives of “Make in India” and “Skill India” for the country’s anticipated medium to long term economic growth, which is carried out in collaboration between governments and citizens of Japan and India, with the goal of developing 30,000 human resources in manufacturing over 10 years.

HCM supports the objectives of the initiatives of Japan and India as well as this program, and has announced its intent to participate through its Group company, Tata Hitachi Construction Machinery Company Private Limited. The plan is to establish a training center within Dharwad Plant, one of the three plants of Tata Hitachi Construction Machinery in India which boasts the latest facilities, as a Japanese Manufacturing School with the aim of training 30 manufacturing workers in three years through lectures and on-the-job training (OJT) in cultivating the future leaders of the industry.

The HCM Group hopes to contribute to the country of India, which is undergoing rapid economic growth, not only through provision of construction machinery including hydraulic excavators needed for social infrastructure development, but also through cultivating human resources within India through its involvement in this program.

Dharwad Plant, Tata Hitachi Construction Machinery Company Private Limited

Dharwad Plant, Tata Hitachi Construction Machinery Company Private Limited.

On-the-job training

On-the-job training

Internship program in Zambia

Hitachi Construction Machinery Zambia Co., Ltd. has launched a three month internship program for students at Northern Technical College (NORTEC) located in the northern Zambia starting January 2018. Each student was placed in the hydraulic, electrical, and mechanical departments for hands-on learning on the production floor. We are also considering the possibility of accepting interns from vocational schools in Lusaka, the capital of Zambia.

Moreover, Hitachi Construction Machinery Zambia supports the development of its employees with outstanding performance by paying for their qualification exams and school tuition. For example, two employees of the parts remanufacturing plant received their qualification as factory workers with the support of Hitachi Construction Machinery Zambia. These two employees were originally hired as general worker who had zero qualifications other than a high school diploma. Their devotion to work was recognized which made them eligible to receive financial support.

In this manner, Hitachi Construction Machinery Zambia contributes to the development of local communities through its involvement in the education and development of the future generation and support for youth employment.

Interns on the job

Interns on the job

Parts remanufacturing business with operations worldwide

Hitachi Construction Machinery has engaged in the parts remanufacturing business since 1970. This business involves collecting old parts that were replaced during machine repair work and then restoring them at our parts remanufacturing plants. Newly remanufactured parts are then sold to customers at a reasonable price after undergoing considerable quality assurance steps ensuring they are as good as new parts.

This parts remanufacturing service includes removing core parts from customers’ machines on site and then replacing them with remanufactured parts already in stock. These used core parts are then brought back to one of our parts remanufacturing plants for remanufacturing, after which they are stocked in preparation for the next order. Therefore, compared to repair parts services where a broken part is brought back for repair and then reinstalled in the machine on site at a late date, our remanufacturing parts service helps to shorten the downtime of customers’ machines. For this reason, our remanufacturing parts service is an ideal option for customers who want to maintain a high utilization rate of their machines while keeping costs down as much as possible.

Additionally, our parts remanufacturing plants maintain technologies for reusing many parts that otherwise would be discarded. This greatly reduces the amount of waste compared to conventional repair services. When customers elect to use our remanufacturing parts service, they are helping to alleviate environmental issues, including climate change.

Furthermore, we gather information on core parts and share this with development-related departments in an effort to constantly improve the quality of our products. Typically, the manufacturer is responsible for any defects that occur during the warranty period, so most of the market information that is provided to development-related departments is within the warranty period. Conversely, there is a shortage of information on product faults after the warranty period. Amidst this, a majority of the core parts handled by our remanufacturing parts service are out of warranty, so we are able to provide various detailed and quantitative data to development-related departments, enabling us to improve the quality of our products and utilize this data in the development of next-generation models.

In this manner, we now engage in the parts remanufacturing business, which generates a great deal of value for society and the environment, too, at 12 of our manufacturing bases around the world, as of March 31, 2018.

Sales of the parts remanufacturing business

Supporting self-reliance in Cambodia through NPOs

Known as the country with the highest density of landmines in the world, Cambodia and its people still suffer from injuries and fatalities from landmine accidents even though its civil war is long over. The HCM Group has been donating to Good Earth Japan (GEJ), an NPO, since FY2007 to support the self-reliant living of local residents in Cambodia. GEJ is involved in promoting and improving farming technologies by providing agricultural training as well as infrastructure development, including roads and irrigation ponds, to improve the living environment. In addition, it also plays a role in advancing education in the country.

In June 2017, a dormitory for teachers was built next to the primary school of Prahop in Battambang Province with the financial support of GEJ. The primary school was constructed in 2010 but due to its poor traffic access for commuting, teachers had been using one of the classrooms as their office and dormitory. As such, for several years now GEJ has received requests to build a teachers’ dormitory. HCM cooperated with Hitachi Construction Machinery Tierra and Hitachi Construction Machinery Japan in donating a portion of proceeds from sales of mini-excavators to fund the construction project, making the plan come to fruition. The quality of education is expected to improve thanks to the new and improved work environment for the teachers.

In FY2018, we will continue to support regional development in Cambodia through our support in agricultural development, road improvement and maintenance, and school maintenance and management.

Commemorative photo taken in front of the teachers’ dormitory

Commemorative photo taken in front of the teachers’ dormitory

Assistance activities at elementary schools in China

The municipal government of Heifei City in China’s Anhui Province has been implementing the Hefei City Project Hope since 1992 to support philanthropy that benefits youth. Many companies endorse this project and to date a number of different activities have been carried out.

Since it was first established, Hitachi Construction Machinery (China) has been involved in activities that benefit society through this project. In particular, in the area of education, Hitachi Construction Machinery (China) has striven to create educational opportunities for children. These efforts include the construction of Hitachi Construction Machinery Songgang Xi Wang Elementary School in 2010 financed in part with an education fund donated to Hefei City, along with regular visits, the donation of educational supplies, and by providing hands-on learning programs.

In August 2017, Hitachi Construction Machinery (China) was given the Hefei City Project Hope award by the City of Hefei for these contributions to the community. Hitachi Construction Marechinery (China) will continue to support the Hefei City Project Hope and provide assistance to youth, who represent our future.

Commemorative photo

Commemorative photo with Wang Wei-Dong, deputy secretary of the Hefei City government (center) (Representative from Hitachi Construction Machinery (China) fourth from the right)

The Hefei City Project Hope Award

The Hefei City Project Hope Award

Desert afforestation activities in the Horqin Desert (China)

The Horqin Desert located in the Inner Mongolia Autonomous Region is the largest desert in China. Until about 20 years ago, most of the population lived a semi-agriculture and semi-animal husbandry lifestyle in which they farmed corn for animal feed while raising cows or goats on pasture land. However, the effects of drought completely transformed the once grassland into desert, resulting in serious issues such as a decline in agriculture and livestock productivity and growing damages caused by desertification.

The HCM Group began desert afforestation activities in the Horqin Desert in 2004 after endorsing the mission of the Green Network, an NPO. The first 10-year plan was launched by Hitachi Construction Machinery (China) in 2004, and by the end of this plan in 2014 vegetation had been planted on some 100,000m2 of desert land. Later, the second 10-year plan began in 2015, with the goal of planting vegetation on 130,000m2 of land in a separate area of the Horqin Desert. Since the start of this plan, Hitachi Construction Machinery (China) has been planting vegetation together with dealers to meet this goal. Furthermore, Hitachi Construction Machinery (China) is promoting the restoration of vegetation on another 100,000m2 of land together with suppliers as the third 10-year plan. The restoration of forest and vegetation on a cumulative total of 330,000m2 of desert land will preserve biodiversity and lead to greater CO2 absorption and resource circulation.

Over the many years of these activities we have built strong relationships with the local government and people. Local revitalization realized through these activities because of the involvement of local people in such work as fence building, planting and maintenance has also contributed to community development. Some wild green pheasants and foxes can be seen again in the location where these activities first took place, indicating that biodiversity has been restored as well.

The HCM Group will continue to promote desert afforestation activities in the Horqin Desert in order to resolve regional environmental issues and to balance improved quality of life with sustainability.

Volunteers

Volunteers


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