Hitachi Construction To Build New Plant
Posted on September 1, 2006
Hitachi Construction Machinery Co. Ltd. said it plans to invest $179 million to build a domestic parts factory to meet strong demand in China and India. Hitachi Construction, a unit of Hitachi Ltd., said the plant in Ibaraki prefecture, northeast of Tokyo will come on line in August 2007.
Boosted by surging demand in the mining industry and rapid growth in China, global makers of excavators, bulldozers and wheel loaders are bullish about the future. "Even with this additional plant, we doubt we can keep up with demand and are expanding production overseas," a Hitachi Construction spokesman said. Bigger rival Komatsu Ltd. has been particularly active. It is building two plants in Japan and one in India, and said last month that it may also build factories in Russia and South Africa.
Hitachi Construction will invest approximately $120 million in the plant this year while the rest, to pay for the land, will be made after three to four years. It aims to boost production of hydraulic excavators by around 17% in the next business year starting in April.