Hitachi Construction Machinery is prepared to move “gradually” into the underground mining equipment space, according to the executive vice president of its mining business, Hiroshi Kanezawa.
Kanezawa told analysts in Tokyo this month the company’s goal to expand its mining sales by about one-third to Y600 billion (US$3.9 billion) by 2030 did not have a meaningful underground component at this stage. HCM aimed to add circa-Y200 billion a year of sales by significantly growing its Americas market presence and its surface mine dump truck business.
“The equipment we manufacture is for surface mining but as for whether the underground mining business is out of scope it is covered by our team of specialised parts and service,” Kanezawa said, pointing to HCM’s Bradken and H+E Parts International units.
“Currently we are prioritising establishing touchpoints with customers through specialised parts and service. Based on this we will consider whether to develop on our own or based on the partnership in future.”
Kanezawa said HCM was working to establish strong central and South American distribution networks, through agencies, to build its mining truck sales in the region. The company was also advancing development of large hybrid diesel-electric dump trucks and battery-powered vehicles to ensure it was well positioned in the post-2030 competitive landscape.
“Our AC drive system is exceptionally superior,” he declared.
HCM is looking for a Y100 billion sales boost from mining dump trucks and a Y100 billion gain from market development – OEM and aftermarket – in the Americas.
Tokyo Stock Exchange-listed Hitachi Construction Machinery’s major shareholders are ITOCHU Corporation and Japan Industrial Partners-controlled HCJI Holdings (about 26% ownership), Hitachi Ltd (c18%) and The Master Trust Bank of Japan (c14%). HCM has a current market value of about Y1.51 trillion (US$9.74 billion).
