Tokyo, Japan August28, 2018 —- Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) today announced that it, in an effort to add depth to the “CONNECT TOGETHER 2019” mid-term management plan currently being implemented by the Hitachi Construction Machinery Group, has acquired a 33.3% equity interest in ACME Lift Company (“ACME”), which runs ACME, an equipment rental company based in the United States. Hitachi Construction Machinery will begin to gradually strengthen its rental business
in the North American construction equipment market.
ACME has positioned itself at the forefront of the re-rental business in North America, with a primary focus on renting aerial work platforms and compressors to equipment rental companies, which they can then rent to their customers. With the aim of expanding its re-rental business model to earthmoving machinery, ACME was engaged in a search for an ideal business partner. Recently, ACME recognized the mutual interests shared by Hitachi Construction Machinery, leading to the decision to select Hitachi Construction Machinery as a business partner.
In its decision to make a capital investment in ACME, Hitachi Construction Machinery aims to grow its rental business in America, which is home to the world’s largest rental market, as well as to acquire business expertise that can be leveraged to expand the business into other regions in the future.
Specifically, Hitachi Construction Machinery will support ACME in finance and through the utilization of its existing North American distribution channels. Hitachi Construction Machinery intends to expand ACME’s earthmoving equipment re-rental business and provide overall business support. The details of these operations will be developed and implemented in the future.
At Hitachi Construction Machinery, we are pursuing a wide variety of efforts aimed at adding depth to our value chain business 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.
This capital investment in ACME is part of our effort to strengthen our rental business, even as we expand the value chain. In the future, our plans are to expand our value chain business by implementing a global expansion of the rental business beyond North America.
Hitachi Construction Machinery Group has pursued efforts as a familiar and trusted partner to provide “Reliable Solutions” that resolve social issues. Moving forward, we aim to expand ACME’s rental business in North America.