Hitachi Construction Machinery's (HCM) board of directors has terminated and dissolved the manufacturer's joint venture relationship with Deere & Company (Deere) in North, Central and South America.
Since 1988, Hitachi Construction Machinery and Deere have collaborated through a joint venture alliance in construction machinery business throughout North, Central and South America. In 1988, the two companies established Deere-Hitachi Construction Machinery Corporation (DHK) to manufacture, import, and distribute hydraulic excavators. The distribution business of hydraulic excavators was later consolidated with the distribution of mining machinery in 2001, in an unincorporated partnership under John Deere Construction and Forestry Company (JDCFC), a subsidiary of Deere. In 2011, the two companies reorganised Deere-Hitachi Máquinas de Construção do Brasil S.A. (DHB) (established in 2000) as a manufacturing joint venture in Brazil and have expanded the joint venture business throughout North, Central and South America.
However, in response to recent changes in the joint venture’s business environment, Hitachi Construction Machinery and Deere have discussed prospects of the joint venture partnership. This has led to a decision to terminate the relationship to allow each party to pursue its growth strategy independently.
In a press statement, Hitachi Construction Machinery said: “Upon the dissolution of the joint venture and starting from March 2022, Hitachi Construction Machinery will be able to provide the newest products, technologies, and services directly to our customers through our independent dealer network, as part of the integrated Hitachi Construction Machinery Group activities throughout the North, Central and South American markets. Hitachi Construction Machinery Group will offer sales and services of compact to construction-sized hydraulic excavators, ultra-large mining machines, and, in addition, wheeled loaders, all of which are recognised globally for their excellence in performance and quality, in these markets.
“Going forward, Hitachi Construction Machinery will have Hitachi Construction Machinery Loaders America, Inc., which currently serves as the production and distribution base for Hitachi branded wheel loaders, to function as the hub of its activities in the Americas. Hitachi Construction Machinery will coordinate with their group companies in the region to build a new business structure.
“While utilising and strengthening the existing network of Hitachi branded hydraulic excavators, trucks and wheeled loader dealers, Hitachi Construction Machinery will build an optimal network for marketing and servicing throughout the entire North, Central and South American markets.”
Hitachi Construction Machinery and Deere have entered into a new supply agreement under which Hitachi Construction Machinery will provide Deere with OEM supply of Deere branded mini excavators and completed hydraulic excavators of the current line-up, as well as components and service parts to Deere’s manufacturing and distribution bases in the United States and Brazil.
