Hitachi Tata J/V makes large trucks in India

TOKYO, Jan 25 (AsiaPulse) – Hitachi Construction Machinery
Co. (TSE:6305) has begun Indian production of huge dump trucks
used in large-scale mine development projects. Telco Construction Equipment Co. (Telcon), a joint venture
with Tata Motors Ltd. (BSE:500570), is manufacturing the
trucks. Hitachi Construction invested 22 billion yen (US$283
million) in the venture in 2010 to increase its equity stake.
Until now, Telcon has made 35-ton dump trucks at a plant in the
state of West Bengal, and will now add 100-ton mining trucks to
its product mix.

Hitachi Construction supplies component parts from its plant
in Hitachinaka, Ibaraki Prefecture. This is only its second
overseas production site for the superlarge trucks, joining one
in Canada.

Selling more of the big dump trucks is a key part of the
company’s drive to achieve an operating profit margin of 30 per
cent in the mining machinery business over the long term, up
from under 10 per cent at present. Although demand for hydraulic excavators in the Indian
market has been much softer than anticipated, orders for large
equipment used in mine development have remained robust. Miners
are using increasi