Starting April 1, Hitachi Construction Machinery will use a new business unit system aimed at sustainable growth and faster resolution of customer issues. The new system is based on business units organized by customer type and product size and will integrate design, manufacturing, sales and services.
In the new organization by business units, operations will be conducted in a matrix structure supported by functional divisions, such as those responsible for development strategy and quality assurance, as well as corporate divisions responsible for general affairs, finance and legal.
The restructuring has been in the planning stages since September 2018, when the company announced its intention to undergo a major domestic overhaul to boost its global competitiveness. By integrating the new operational structure into the company, Hitachi Construction Machinery aims to strengthen the products and services business and develop the solutions business.
Under this plan, five business units will be created.
- The construction business unit will handle medium and large machinery for general construction sites.
- The mining business unit will manage ultra-large mining machines used in the extraction and transport of resources such as iron ore.
- The compact business unit will deal with small construction machinery for urban civil works and for the agricultural and forestry industries.
- The parts and service business unit.
- The rental and used machinery business unit.
Each business unit will be set up under the direct control of the President and Chief Executive Officer, and the President of each business unit will be responsible for the profitability and sustained growth of the company. In addition, a new Business Creation Unit will be created with the aim of generating and developing new business. The new business creation unit will strive to expand the solutions business by pursuing collaborative creation with other organizations, including customers, research institutes, companies and promising start-ups.
The organizational changes associated with the introduction of this business unit system will only apply to Hitachi Construction Machinery. Consolidated business performance results will continue to be presented by business segment (construction machinery business and solutions business).
As of April 1, the new organization chart includes:
- Kotaro Hirano, President and CEO
- Construction Business Unit: Yusuke Kajita, Vice President and General Manager
- Mining Business Unit: Sonosuke Ishii, Senior Vice President and General Manager
- Compact Business Unit: Ichimura Kazuhiro, President of Hitachi Construction Machinery Tierra
- Spare parts and service division: Eiji Fukunishi, general manager
- Rental and Used Machinery Business Unit: Hidehiko Matsui, General Manager and CMO
- New Business Creation Unit: Hideshi Fukumoto, Vice President and General Manager
The deployment is one of many organizational changes announced by Hitachi since the company agreed to end its joint venture relationship with John Deere in August. Ties between the two companies were officially severed on February 28, 2022. Going forward, Hitachi will supply Deere with excavators, components and parts under a new OEM supply agreement for the foreseeable future.
The first excavator built by Hitachi of Tsuchiura Works in Japan arrived on American soil on January 11. Since then, Hitachi has 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 ships compact machines, spare parts and mining equipment for delivery to dealerships across the United States and Canada. Hitachi secured new contracts with small and medium-sized dealers in North, Central and South America for construction equipment and multi-regional dealers for mining equipment.