Hitachi Construction Machinery

Global

The building of a new factory for large size construction machinery

23 May, 2007

The Hitachi Company decided to embark on the ” Building of a new factory for large size construction machinery” as stated below.

1. Background of construction

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.

2. Summary of New Factory

Planned Construction Site Area of Hitachi-Naka port reservation site 183,000m2
(160m×±,144m)
At present the relevant land is under reclamation construction.
Details of the contract, including the conclusion date of the contract, will be negotiated with Ibaraki prefecture.
Building Dimensions 46,500m2 (total roofed area. The building itself is 35,500m2)
[Main Points]

  • Plate work/engineering factory for mining excavators and mining dump trucks
  • Assembly/painting factory for mining excavators and mining dump trucks
  • Undercarriage assembly/painting factory for large hydraulic excavators
  • Office buildings, etc.
Production Scale
  • Large hydraulic excavators (120t): 125 machines/year
  • Mining hydraulic excavators (190t-800t): 165 machines/year (include out-sourced production)
  • Mining dump trucks: 80 machines/year
Logistical Rationalization
  • Reduction of disassembly/reassembly workload for shipment of the large hydraulic excavators
  • Reduction of Logistic cost
  • CO2 reduction
Personnel About 250

3. Planned Investment (without land cost)

  • Building and Infrastructure related: About 10 billion yen
  • Facilities (production facilities, test mold platen): About 4 billion yen

Total: About 14 billion yen

4. Future Schedule

  • 2007 early August: Begin factory construction.
  • 2008 end of March: Factory completion.
  • 2008 April: Factory begins production.
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