It will not only expand two of its existing plants, but will also construct new facilities in Hitachinaka City, Japan.
The manufacturer also intends to invest in its Indonesian and Canadian locations to further increase production and improve efficiency on a global basis. The total cost will be approximately €430million (€370million in Japan; €30million globally).
Sales of mining machinery are expected to continue to grow due to the substantial demand for resources around the world.
As of 2013, HCM predicts annual production of 170 units of large hydraulic excavators up to 120 tonnes; 240 units of ultra-large hydraulic excavators between 190-800tonnes; and 260 units of dump trucks with a loading capacity of 190-300tonnes.
Therefore, HCM has decided to increase the production capacity for its mining machines as well as the components required for after-sales servicing.
It believes the quality of the machines will be enhanced and costs will be reduced by focusing on production plants close to its development base at Tsuchiura Works, located in Japan's Ibaraki Prefecture.
Hitachinaka-Rinko Works will be extended by 9,950m2 to create space for assembling large and ultra-large excavators and dump trucks, plus a new training centre.
In March 2012, HCM will acquire 78,312m2 of land adjacent to both the harbour and Hitachinaka-Rinko Works, for the construction of a 29,297m2 plant. The new facility will produce frames of large and ultra-large excavators and dump trucks, and accommodate employee facilities and an office.
Hitachinaka Works will also be extended by 29,900m2 for the machining of the components required by mining machines. In addition, HCM has acquired 224,335m2 adjacent to the Hitachinaka Works for the construction of a 37,155m2 plant.
Components previously manufactured at Hitachinaka Works will be transferred to the new plant, where they will be assembled to form modules (a functional group of components). The new plant will act as a main distribution base, transferring the modules to Hitachinaka-Rinko Works and shipping them to the plants in Canada and Indonesia, for efficient machine assembly.
Work has already begun on the extension work at the two Japanese facilities and is due for completion by the end of 2012. The two new plants will be fully operational by October 2013. More than 500 new jobs will have been created in Japan by 2015.
HCM is also making investments to raise the production capacity of factories in Indonesia and Canada. Work on the Cibitung plant in Bekasi is now underway - the Hitachi Construction Machinery Indonesia facility will be extended by 11,118m2. A new 20,280m2 plant will also be built on a 100,000m2 site in West Cikarang. They will be used to manufacture components of undercarriages, frames and front attachments of large and ultra-large excavators.
In Canada, the existing 110,000m2 plant in Guelph, Ontario will be extended by 13,294m2 for the manufacture of dump trucks with a loading capacity of 190 to 300 tonnes. The new Hitachi Construction Truck Manufacturing site will mainly serve the markets in North, Central and South America, when it is complete in April 2013.
