Hitachi Construction Machinery has announced plans to establish a new subsidiary, Hitachi Construction Machinery Development Center India Private Limited, in Hubballi, Karnataka, by late December 2024. The center will focus on the development and design of construction machinery, with operations expected to ramp up by April 2026.
The company plans to invest 99 million rupees (approximately 180 million yen) in the new entity, with a 94% stake held by Hitachi Construction Machinery and the remaining 6% by Hitachi Construction Machinery Tierra. Initially, the center will employ approximately 10 staff, with a target to expand to 200 engineers and designers by fiscal year 2027.
The development center will contribute to creating globally deployed products, including hydraulic excavators and wheel loaders, while also developing underlying technologies for construction machinery. The facility will utilize Computer Aided Engineering (CAE) tools for simulations and technical analyses, such as structural strength, heat transmission, and vibration studies.
Hubballi was selected due to its pool of skilled talent in IT and mechanical engineering, bolstered by local universities and startups. The city, recognized as a smart city, provides a conducive environment for industrial and educational growth, aligning with the company’s long-term development goals.
The subsidiary’s leadership will include Takahiro Kobayashi as Managing Director and Biplab Hore as Deputy Managing Director.
The establishment of the center is contingent upon obtaining necessary approvals and permits from relevant authorities, according to a company press release.
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.