Hitachi Construction Machinery Begins Operation of Salt Lake City Parts Warehouse Supplying Service Parts to Western North America

Strengthening the parts supply system in the Americas and contributing to the stable operation of machinery

Tokyo, September 10, 2024 - Hitachi Construction Machinery Co., Ltd. (TSE: 6305, President and Executive Officer: Masafumi Senzaki; "Hitachi Construction Machinery") began operation of the Salt Lake City Parts Warehouse (Salt Lake City, Utah, USA) from September to strengthen its supply system for service parts in western North America. This new warehouse will enable the company to supply service parts, which were previously shipped from parts warehouses outside of Atlanta, more rapidly to dealers and customers in western North America.

Service parts for construction and mining machinery must be supplied to customers in a rapid and reliable manner to maintain stable machinery operation. The Hitachi Construction Machinery Group began operation of the Jackson Parts Warehouse (Jackson, Georgia) and McDonough Parts Warehouse (McDonough, Georgia) outside of Atlanta in 2022 to strengthen its parts supply system in the Americas. Previously, these warehouses supplied parts to regions all over the Americas including Canada, Central and South America.

The operation of the Salt Lake City Parts Warehouse is expected to shorten the delivery lead time by approximately one to three days for service parts shipped to dealers in the US states of Utah and Alaska, the Canadian province of Alberta, and other regions of western North America. The new warehouse is scheduled to store 30,000 different parts upon opening and ship around 500 orders per day.  Going forward, the company plans to expand warehouse operations through further enhancement of equipment and systems. Furthermore, operation of the warehouse will be entrusted to LOGISTEED America, Inc. (CEO: Greg Kodama) under a 3PL* arrangement similar to the parts warehouses outside of Atlanta.
*3PL: an abbreviation of 3rd Party Logistics. The execution of all distribution operations of the company is outsourced in its entirety to a third-party enterprise.

The Hitachi Construction Machinery Group will continue to contribute to the stable operation of customer machinery through the rapid and reliable supply of service parts in the future.

Overview of the Salt Lake City Parts Warehouse

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About Hitachi Construction Machinery Co., Ltd.

Hitachi Construction Machinery Co., Ltd. (TSE: 6305), 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.

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.