ncarol.com - Hitachi Construction Machinery Establishing Latin American Regional Headquarters in Chile

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Strengthening focus from new machinery sales to the localization of parts and support to rapidly respond to the needs of dealers and customers in Latin America.

TOKYO, Japan - ncarol.com -- Hitachi Construction Machinery Co., Ltd. ("Hitachi Construction Machinery") decided at a Board of Directors meeting held today that it will establish Hitachi Construction Machinery Latin America SpA ("Hitachi Construction Machinery Latin America") in the Republic of Chile ("Chile") on April 1, 2025, to oversee and expand it's business in Latin America. The establishment of Hitachi Construction Machinery Latin America will strengthen the company's focus from new machinery sales to the localization of parts and service support in Latin America to rapidly respond to the needs of dealers and customers.

With the dissolution of the joint venture with Deere & Company, the Hitachi Construction Machinery Group has been independently expanding the sales of new construction machinery and the provision of parts and services in the North and Latin American regions since March 2022. Until now, the Group has primarily focused its efforts on launching and expanding its sales and service system in North America and developed a dealer network and parts warehouses.

Currently, Hitachi Construction Machinery Americas Inc. (headquarters: Newnan, Georgia, USA; "Hitachi Construction Machinery Americas") is responsible for the Latin American region along with North America. Due to differences in culture, language, and business practices between North America and Latin America, it was decided that a regional headquarters would be established in the region with Chile serving as the headquarters for Latin America to rapidly respond to the needs of regional dealers and customers. Chile is the largest market in Latin America for mining dump trucks, a segment in which Hitachi Construction Machinery is working to expand sales, and close communication with customers is expected due to the concentration of headquarters for major mining companies. In addition, agreements for compact and construction products have been signed with dealers in Chile, Co-operative Republic of Guyana, Dominican Republic, Republic of Colombia, and Republic of Suriname. First, the regional headquarters for Latin America will be established in Chile followed by the gradual development of a sales and service network including Brazil, which is the Group's largest market for construction products.

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The Hitachi Construction Machinery Group is rebuilding the business structure for Latin America around Hitachi Construction Machinery Latin America with the goal of reaching sales revenue of 100 billion JPY or more in FY2030 in Latin America.

Hitachi Construction Machinery's Senior Vice President and Executive Officer, General Manager of America Business Div and Chairman of Hitachi Construction Machinery Americas, Sonosuke Ishii, stated " We have enjoyed the opportunity to develop relationships and grow partnerships within the Latin American region and are very excited for the addition of the new Latin American regional headquarters. Hitachi Construction Machinery intends to support our customer's and dealer's success with this new focused approach. This new team, which have detailed knowledge of the market, will be able to respond quickly to sales, parts and support needs. Hitachi Construction machinery Americas Inc. will support the new Latin American regional headquarter for seamless transition to build a strong network for continued success."

Overview of Hitachi Construction Machinery Latin America

Company name: Hitachi Construction Machinery Latin America SpA
Location: Santiago, Chile
Business Activities: Hitachi Construction Machinery Latin America SpA will supply construction machinery (construction, compact, and mining products), parts, and services in the Latin American region as well as oversee the regional business.
Capital: 10 million USD
Date of Establishment: April 1, 2025 (scheduled)
Business Start Date: October 2025 (scheduled)
Shareholding Ratio: Hitachi Construction Machinery: 100%

About Hitachi Construction Machinery Co., Ltd.

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Hitachi Construction Machinery Co., Ltd., headquartered in Tokyo, Japan, is a construction machinery manufacturer which globally deploys development, manufacturing, sales, and service businesses for its hydraulic excavators, wheel loaders, compaction equipment, and mining machinery, etc. In addition to its new machinery business, Hitachi Construction Machinery is expanding its "value chain businesses" of parts and services, remanufacturing (parts and machines), rentals, and used equipment as it aims to grow together with customers as a true solutions provider that offers innovative solutions to customers. As our vow to all stakeholders to achieve this mission, we established and are currently disseminating and promoting the LANDCROS as our new concept. With roughly 26,000 employees around the world, the consolidated sales revenue for Hitachi Construction Machinery was 1,405.9 billion yen for fiscal year 2023 (ended March 2024) with an overseas sales revenue ratio of 84%. For more details, please see the company's website: https://www.hitachicm.com/global/en/

Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.