Hitachi expands plant, production to meet compact equipment demand
By Becky Schultz11 May 2022
Hitachi Construction Machinery Co. Ltd. announced it will increase production capacity for compact excavators and compact wheel loaders produced at the Shiga Works production facility of its consolidated subsidiary, Hitachi Construction Machinery Tierra Co. Ltd. The Shiga Works facility, located in Shiga, Japan, is projected to produce approximately 30% more machines by FY 2025 compared to the number of units produced in FY 2021.
Propelling the expansion is a growing need for compact equipment in North America and Europe as these regions continue their economic recovery following the lifting of COVID-19 restrictions. Steady growth in the number of housing starts in North America in particular led Hitachi Construction Machinery Americas Inc. to start its full-scale business expansion in March 2022.
Hitachi Construction Machinery Group also points to the increasing interest in electric construction equipment in the European market, which led the company to add to its battery-powered lineup. Orders for its new 5-tonne class ZX55U-6EB battery-powered mini-excavator are scheduled to start for Europe in June 2022.
Because compact products are often used to handle work in place of personnel and frequently operate in urban areas, Hitachi Construction Machinery recognized a growing need for high functionality and electrification, which requires more advanced development testing. Consequently, Hitachi Construction Machinery Tierra plans to relocate its product test site near the Shiga Works and expand its functionality.
In addition to an expansion of environment-resistant testing equipment, starting from FY 2024, Hitachi Construction Machinery Tierra will be able to conduct various tests such as mini-excavator excavating tests and mini wheel loader running tests, including for electric construction equipment, structural rigidity tests and more, at the 198,056-sq.-ft. site, which is approximately twice the size of the previous testing site.