Contributing to reduction of environmental impact and realization of circulating society

Tokyo, Japan April 15, 2021 —Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) announced that the company has established a new parts remanufacturing plant for medium to large-sized hydraulic excavator on the premises of Cibitung 1 Factory of P.T. Hitachi Construction Machinery Indonesia (Head Office: Jakarta, Indonesia; “Hitachi Construction Machinery Indonesia”), the production base in Republic of Indonesia(“Indonesia”). The new plant will start operation in June 2021.

By collecting and remanufacturing used parts and building a supply network in the Southeast Asian region, Hitachi Construction Machinery will contribute to reduction of CO₂ emissions and industrial waste and realization of a circulating society. It will also enable customers to reduce costs and lead time for purchasing remanufactured parts.

Hitachi Construction Machinery Group’s parts remanufacturing business involves collecting, disassembling and repairing customers’ used genuine parts, such as hydraulic cylinders, hydraulic pumps and travel device, and then providing for reuse as remanufactured parts with the same function warranty as new parts. Parts remanufacturing business in the Southeast Asian region has been remanufacturing used parts and supplying to Indonesia, mainly for mining products, but transportation costs and turnaround were a problem due to the need to route the supply of remanufactured parts for medium to large-sized hydraulic excavator to countries and regions other than Indonesia via Japan.

The new component remanufacturing plant will be an important base for supplying remanufactured parts for medium to large-sized hydraulic excavators to the Southeast Asian region. Including the volume of parts remanufactured in Southeast Asia region, Hitachi Construction Machinery Group aims to reduce CO₂ emissions by 23,800 tons and industrial waste by 9,500 tons* overall in FY2022.

Going forward, in addition to strengthening the value chain business, including the parts remanufacturing business, and contributing to the reduction of environmental impact and the realization of circulating society, the Hitachi Construction Machinery Group will contribute to the stable operation of customers’ machinery and lower lifecycle costs.

*Numerical targets for used equipment business and parts remanufacturing business combined (Announced at Hitachi Construction Machinery ESG Explanatory Meeting on December 15, 2020)

Overview of Parts Remanufacturing Plant (on premises of Hitachi Construction Machinery Indonesia Cibitung 1 Factory)

・Location: Jalan Raya Cibitung KM 48.8 Cibitung, Bekasi West Java 17520, Indonesia

・Total floor area: 900m²

・Main remanufactured parts: Hydraulic cylinders, hydraulic pumps, travel device, etc.