Beginning April 1, Hitachi Construction Machinery will use a new business unit system aimed at sustainable growth and accelerated customer problem solving. The new system is based on business units organized by customer type and product size, and will integrate design, production, sales and services.
In the new business unit-based organization, activities will be conducted within a matrix structure supported by functional units, such as those responsible for development strategy and quality assurance, and corporate units responsible for general affairs, finance and law.
The restructuring had been in the planning stages since September 2018, when the company announced its intention to undertake a major internal upgrade to strengthen its global competitiveness. By incorporating the new operating structure into the company, Hitachi Construction Machinery intends to strengthen its products and services business and expand its solutions business.
According to the plan, five business units will be established.
The construction division will focus on medium- and large-scale machines for general construction sites.
The mining division will deal with ultra-large mining equipment used to extract and transport resources such as iron ore.
The compact division will deal with small construction equipment for urban civil engineering as well as agriculture and forestry.
A parts and service division.
A division for the rental and sale of used machinery.
Each division will be established under the direct supervision of the president and CEO, and the president of each division will be responsible for profitability and sustainable business growth. In addition, a new business creation division will be created for the purpose of generating and developing new business. The new business creation division will seek to expand the business of solutions by working collaboratively with other organizations, including customers, research institutes, companies and promising start-ups.
The organizational changes associated with the implementation of this business unit system will apply only to Hitachi Construction Machinery. Consolidated business results will continue to be reported by business segment (construction machinery business and business solutions business).
Effective April 1, the new organizational chart includes:
Kotaro Hirano, president and CEO
Construction division: Yusuke Kajita, vice president and chief executive officer
Mining division: Sonosuke Ishii, senior vice president and CEO.
Compact division: Ichimura Kazuhiro, president of Hitachi Construction Machinery Tierra
Aftermarket division: Eiji Fukunishi, CEO
Used Machinery Business Unit: Hidehiko Matsui, CEO and Managing Director
New Business Creation Division: Hideshi Fukumoto, vice president and CEO.
The change is one of many organizational changes Hitachi announced after the company agreed in August to sever its relationship with its John Deere joint venture. Ties between the two companies were officially severed effective Feb. 28, 2022. Going forward, Hitachi will supply Deere with excavators, components and parts under a new parts agreement for the foreseeable future.
The first Hitachi excavator from Tsuchiura Works in Japan arrived on U.S. soil Jan. 11. Hitachi has since been training its sales staff in preparation for the launch of the company’s independent sales and service network on March 1.
In addition to excavators, the company supplies compact machines, spare parts and mining equipment for delivery to dealers across the U.S. and Canada. Hitachi has entered into new contracts with small- and medium-sized dealers throughout North, Central and South America for construction equipment and with dealers in several regions for mining equipment.