Hitachi Construction Machinery Increasing Global Production Capacity for Mining Machines

Hitachi Construction Machinery will construction new production facilities to increase its global production capacity for mining machines.

Hitachi Construction Machinery Co. Ltd. has decided to expand two existing plants in Hitachinaka City, Ibaraki Prefecture, and to construct more plants in the city to significantly boost the production capacity for machines for mining, such as large and ultra-large hydraulic excavators and dump trucks. The firm will also make investments to raise production at overseas plants (Indonesia and Canada).

Background to the construction of the plants

Demand for mining machinery is expected to continue to grow because of the robust demand for resources all over the world. Under these circumstances, Hitachi Construction Machinery has decided to significantly boost production capacity for mining machines, particularly large and ultra-large hydraulic excavators and dump trucks, and to make investments to raise production at domestic and overseas plants. Hitachi Construction Machinery will strengthen production capacity not only for mining machines as a whole, but also for the components needed for after-sale servicing, considering that mining machines are in continuous operation for many hours.

Hitachi Construction Machinery already has five plants, notably Tsuchiura Works, the company’s development base, located in Ibaraki Prefecture, and further investments in the prefecture will bring about improvements in distribution efficiency, including cuts in transportation costs and greater production efficiency. The development and production of mining machines require advanced and sophisticated production technologies, including the procurement of materials. The quality of the machines will be enhanced and costs reduced by making the most of the advantages of concentrating production at plants near the development base. In this way, Hitachi Construction Machinery will also be able to make a contribution to national employment.

Hitachinaka-Rinko Works, in Hitachinaka City, Ibaraki Prefecture, which produces mining machines, will be extended and land will be acquired (78,312 square meters) adjacent to both the harbor and Hitachinaka-Rinko Works, for the construction of new plant. Hitachinaka Works, in the city, which manufactures the components of mining machines (key components such as reduction gears), will also be extended. Nationally-owned land (224,335 square meters) adjacent to Hitachinaka Works has been acquired for the construction of a totally new plant that will incorporate innovative ideas. The components manufactured at Hitachinaka Works will be transferred to the new plant where they will be assembled to form modules (a functional group of components) to facilitate assembly of the machines. The transfer of modules to Hitachinaka-Rinko Works, which manufactures machines, will further raise the efficiency of machine assembly at Hitachinaka-Rinko Works.

The plan is to ship these modules to overseas plants, so the new plant will play a role as the new distribution base.

The company will make investments to raise the production capacity of plants in Indonesia and Canada, with the aim of improving production efficiency and boosting production capacity on a global basis.