After Rebranding, Hitachi Has Reduced Its Ownership Of Hitachi Construction Machinery

Hitachi Ltd. has taken another major step toward reshaping its business portfolio by reducing its stake in Hitachi Construction Machinery (HCM). According to a recent share transfer statement dated November 4, the company’s voting rights ownership in HCM will fall from 25.4% to 18.4%. This change also means that Hitachi Construction Machinery will no longer be treated as an equity-method affiliate of Hitachi Ltd.

Did Hitachi decide to split up all of a sudden?

Hitachi had hinted at the possibility of a full or partial layoff several years ago, first in March 2019 and then again in October 2020. The latest stake reduction appears to be consistent with the company’s long-term strategy to redefine its identity and focus on sectors with higher growth potential, particularly in the digital and smart systems space.

How will rebranding affect this decision?

It’s interesting to note that this choice follows Hitachi Construction Machinery’s announcement that it will formally change its name to Landcros in April 2027. The timing implies a connection between the two actions, suggesting a deliberate attempt to provide the construction unit more autonomy and flexibility in its international expansion.

According to Hitachi Ltd., the smaller ownership will enable HCM, which will soon become Landcros, to pursue independent and self-reliant management. The company hopes to improve its capacity to make quicker business decisions and expand more freely in foreign markets by diversifying its shareholder base, particularly in areas where demand for sustainable and digital construction solutions is rising quickly.

Will this partnership continue after the ownership takedown?

Hitachi Ltd. stressed that its collaboration with Hitachi Construction Machinery will endure despite the divestment. Both businesses intend to continue working closely together in a number of important areas, such as electrification, digitalization, autonomous driving technologies, and parts supply of Heavy Construction Equipment for sale. For clients and partners who depend on the brand’s integrated systems and worldwide service network, this implies that even though ownership ties are being relaxed, technological and operational collaborations will continue.

Instead of a total split, Hitachi Ltd. characterized the change as a strategic evolution. The objective is to give HCM greater freedom to compete internationally while maintaining reciprocal cooperation in fields driven by innovation that complement Hitachi’s larger vision for digital transformation.

Will there be a possible impact on the company’s overall performance?

Hitachi Construction Machinery affirmed that neither its operational nor financial performance will be impacted by this ownership change. The company’s excavators, wheel loaders, and mining equipment are still in high demand worldwide, especially in Asia, North America, and Europe. The manufacturer is positioning itself to adopt a new market identity, one that emphasizes sustainability, technology, and clever construction solutions, with its impending rebranding to Landcros.

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