Hitachi Invests in Indonesia to Expand Giant Excavator Production
Hitachi Construction Machinery will begin producing ultra-large 120-ton hydraulic excavators at its Indonesia factory from November, as global demand for mining excavators remains strong.
Japan, September 20, 2024 - Hitachi Construction Machinery will begin mass production of ultra-large hydraulic excavators with vehicle weights of 120 tons at its Indonesia factory from November. The company has invested about 1.8 billion yen in expansion work, setting up a dedicated line for annual production capacity of about 20 units. Currently, production is carried out at the Hitachinaka Rinko Factory (Hitachinaka City, Ibaraki Prefecture), but the plant is to switch production to Indonesia, which has abundant coal mines, in order to meet growing demand. Demand for ultra-large excavators for mining is steady worldwide, so the company is considering developing them with the aim of establishing a global production system.
The mass production will take place at the Cibitung, No. 2 Factory (Bekasi, West Java) of PT Hitachi Construction machinery Indonesia, a local subsidiary. The factory has a site area of 100,000 square meters and a total floor space of 18,000 square meters. In addition to producing medium-sized hydraulic excavators, the company also produces welded structures for ultra-large hydraulic excavators.
This time, the facility investment has expanded the floor space by 9,000 square meters. New assembly space and production equipment for ultra-large excavators have been installed to unable mass production. In the expanded area, the company will utilize its advanced welding technology to produce chassis parts for ultra-large dump trucks in addition to excavators.
Hitachi Construction Machinery’s mining machinery sales are headed for Asia, accounting for 45% of the company’s total sales, with most of that coming from Indonesia. For 120-ton excavators in particular, the Asian ratio is expected to rise to 53%
Regarding the Indonesian operations of construction machinery companies, Sumitomo Construction Machinery is also utilizing its factories in the country, promoting efforts to improve work skills and promoting measures to produce highly profitable forestry machinery and increase exports to North America.
