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Hitachi Construction Machinery begins parts remanufacturing for construction machinery in the Republic of South Africa

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Hitachi Construction Machinery Co., Ltd. (TSE: 6305 President and Executive Officer:Kotaro Hirano; “Hitachi Construction Machinery”) embarks on the production of remanufactured parts for construction machinery, such as medium to large sized hydraulic excavators and medium sized wheel loaders, in March 2023 at Hitachi Construction Machinery Southern Africa Co., (Pty) Ltd.

(President and Director: Tomoatsu Toki; “Hitachi Construction Machinery Southern Africa”), Hitachi Construction Machinery’s base for sales and services in the Republic of South Africa (“South Africa”).

In addition to parts remanufacturing for mining machinery conducted in Zambia from 2012,
the target will be expanded to construction machinery to strengthen our parts remanufacturing business in Southern Africa.

We will also contribute to reducing environmental impact and realizing circulating society through further reduction in CO2 emissions and industrial waste.

Our customers in South Africa can purchase remanufactured parts with warranty and thus
reduce component procurement costs. The supply of remanufactured parts within South
Africa shortens lead time to delivery and keeps down transportation costs. In the future, the
remanufactured parts will be supplied to neighboring countries as well. Our customers are faced with the issues of improving jobsite safety and productivity and reducing machine lifecycle costs. In addition, changes in the markets are driving up operating costs for customers to keep their machines operating.

As one approach to solving such issues, the Hitachi Construction Machinery Group is developing the parts remanufacturing business. Specifically, we collect genuine components
2 such as hydraulic cylinders and pumps from machinery in use by customers, disassemble
and repairing them at the works, and provides them as remanufactured parts with performance equivalent to new parts.

Currently in Southern Africa, Hitachi Construction Machinery Zambia and H-E Parts are
collaborating in Zambia to remanufacture parts for mining machinery such as ultra-large
hydraulic excavators and dump trucks.

As the next step, we have completed the development of necessary facilities for remanufacturing parts for construction machinery at Hitachi Construction Machinery
Southern Africa’s site in South Africa, the largest construction machinery market in the
Southern African region.

Hitachi Construction Machinery Southern Africa also plans to provide maintenance and servicing of ultra-large hydraulic excavators and dump trucks, as well as repair work for hydraulic equipment and components, using the same facilities.

As supplying remanufactured parts to South Africa from other countries or regions takes
extensive lead time and has high transportation costs, we needed to build a framework in
South Africa for remanufacturing parts for construction machinery.

Going forward, in addition to strengthening the value chain business, including the parts
remanufacturing business, and contributing to the reduction of environmental impact and the realization of circulating society, the Hitachi Construction Machinery Group will continue to work toward resolving customer issues of “improving safety,” “increasing productivity” and “reducing lifecycle costs”.

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