Hitachi to place “greater emphasis” on local production focus – HCME president

Hitachi Construction Machinery is to place “greater emphasis” on establishing local production facilities as it bids to strengthen its market position, said Hitachi Construction Machinery Europe (HCME) president and chief executive Moriaki Kadoya. A subsidiary of the Hitachi Group, Hitachi Construction Machinery currently has 33 production sites worldwide – with 16, including its flagship production site near Tokyo, in Japan. Two new production sites - HCMR in the Tverskaya region of eastern Russia; and Dee
February 26, 2013 Read time: 2 mins
Moriaki Kadoya speaking at Hitachi Construction Machinery Europe (HCME) pre bauma press day at HCME HQ in Amsterdam, The Netherlands
233 Hitachi Construction Machinery is to place “greater emphasis” on establishing local production facilities as it bids to strengthen its market position, said Hitachi Construction Machinery Europe (HCME) president and chief executive Moriaki Kadoya.

A subsidiary of the Hitachi Group, Hitachi Construction Machinery currently has 33 production sites worldwide – with 16, including its flagship production site near Tokyo, in Japan.

Two new production sites - HCMR in the Tverskaya region of eastern Russia; and Deere-Hitachi in São Paulo, Brazil – are due to be completed before the end of 2013.

“We need to place a greater emphasis on local production to reduce materials and logistics cost, while increasing efficiency of our production facilities,” said Kadoya during the pre 688 Bauma event at HCME’S HQ in Amsterdam, The Netherlands.

“In the coming fiscal year, we will have 35 production facilities throughout the world – including our factories in Japan. Currently there are two production facilities under construction, in Russia and Brazil, scheduled for completion this year.”

Kadoya said that of Hitachi Group’s YEN 9,665.8 billion revenue in the year to March 31 2012, 10% (US$8.55 billion, YEN 798.7 billion) came from Hitachi Construction Machinery. He claimed the revenue figure makes Hitachi Construction Machinery the third biggest construction machinery manufacturer worldwide, behind 178 Caterpillar and 2300 Komatsu.

“In order to meet our objectives to meet our objectives to strengthen our market position we’ve outlined a ten year global strategy which focuses on research and development, global production, sales and service, life cycle support, mining, and global management.”

Outside Japan, Hitachi Construction Machinery has four production facilities in China; three in The Netherlands; three in Indonesia; three in India; two in Spain; one in the United States; and one in Canada.

For more information on companies in this article

Related Content

  • India rushing to improve its highway system
    February 9, 2012
    Despite the world economic slowdown, India still seems in a rush to improve its highway system as Patrick Smith reports. Later this year India will be seen by hundreds of millions worldwide when the country's capital New Delhi hosts its biggest event ever.
    Read More
  • CEA-backed report’s blueprint for UK construction equipment sector growth
    June 11, 2014
    Investment in advanced machine electronics capability; further investment in training and apprenticeship programs; and support for the UK as a continued centre for R&D are all key to securing growth within the British construction equipment industry, according to a comprehensive new Construction Equipment Association (CEA) commissioned report. Further recommendations for the industry in The UK Construction Equipment Sector Report are the need to ensure the cross fertilisation of advanced design, manufactu
    Read More
  • Volvo CE US$100 million Americas expansion
    March 22, 2013
    Volvo Construction Equipment president Pal Olney stressed the long-term importance to the company of the North American market while formally recognising the industry giant’s US$100 million expansion programme at its Shippensburg, Pennsylvania facility. Olney cut the ribbon to officially open Volvo CE’s new Americas’ headquarters building. The event also saw the unveiling of the first wheeled loader to roll off the Shippensburg site’s cutting edge assembly line. On the significance of the two big landmarks,
    Read More
  • Wacker Neuson reports record revenue
    May 11, 2017
    Wacker Neuson is reporting a record revenue for its first quarter in 2017. The Munich-based international light and compact equipment manufacturer said that adjusted profit before interest and tax (EBIT) increased significantly. At the close of the first quarter, order intake and backlog showed a clear rise over the figures posted for the prior-year period. "The year has got off to a very promising start for our Group. The investment mood among many national and international customers in most of our target
    Read More

Highlighted Content