Hitachi Construction Machinery Transfers its Shareholding in Sumitomo Heavy Industries Construction Cranes to Sumitomo Heavy Industries

Further accelerate business structure transformation through concentration and selection of product lineups

Tokyo, November 30, 2022 –Hitachi Construction Machinery Co., Ltd. (TSE: 6305; "Hitachi Construction Machinery") today announced that it has agreed to transfer its all holdings (27,200 shares, 34% of voting rights held) in equity-method affiliate company, Sumitomo Heavy Industries Construction Cranes Co., Ltd. (headquarters: Taito-ku, Tokyo; President: Michikazu Okada, “Sumitomo Heavy Industries Construction Cranes”) to Sumitomo Heavy Industries, Ltd. (headquarters: Shinagawa-ku, Tokyo; President: Shinji Shimomura, “SHI”), the parent company of Sumitomo Heavy Industries Construction Cranes, and has concluded a transfer agreement.

Hitachi Construction Machinery and SHI merged their crawler crane businesses in 2002 to form the current Sumitomo Heavy Industries Construction Cranes (then known as Hitachi Sumitomo Heavy Industries Construction Crane). In March 2017, Hitachi Construction Machinery transferred a portion of its holdings in Sumitomo Heavy Industries Construction Cranes to SHI, and since then we have been cooperating in the development of the crawler crane business, and have now agreed to transfer all shares of Sumitomo Heavy Industries Construction Crane held by Hitachi Construction Machinery to SHI.

The Hitachi Construction Machinery Group has long promoted various business structural reforms in Japan and overseas in order to strengthen our global competitiveness. The medium-term management plan currently underway focuses not only on sales of competitive new equipment sales, including hydraulic excavators and wheel loaders ranging from construction to compact, which are our strengths, as well as ultra-large hydraulic excavators for mining use and dump trucks, but also on the expansion of our parts and services, rental, used equipment, and financing businesses other than new equipment sales.

This decision was made as part of a series of business restructuring initiatives. Hitachi Construction Machinery Group will continue their transition into a strong business structure under the group's corporate vision of "To pass on a productive environment and prosperous cities to future generations," we will contribute to the development of the entire world and realize stable growth.

Outline of Sumitomo Heavy Industries Construction Cranes

About Hitachi Construction Machinery Co., Ltd.

Hitachi Construction Machinery Co., Ltd. (TSE: 6305), headquartered in Tokyo, Japan, is a construction machinery manufacturer. The company engages in the development, manufacturing, sales, and service operations around the world for hydraulic excavators, wheel loaders, road construction machines, and mining machinery. Hitachi Construction Machinery is strengthening its focus on value chain businesses other than new machinery sales, such as parts and services, rentals, used equipment, and parts recycling, and is utilizing digital technologies to provide deeper solutions at all points of contact with customers. Hitachi Construction Machinery employs approximately 25,000 people worldwide. In fiscal year 2021 (ended March 2022), the consolidated sales revenue was ¥1,025.0 billion and the percentage of overseas sales revenue was approximately 79%. For details, visit the company’s website.

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.