Hitachi to launch shovel parts recycling factory in Indonesia

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JAKARTA, IDFinancials – Hitachi Construction Machinery Co. will begin operating a factory in Indonesia in June to recycle components for medium-sized and large hydraulic shovels.

The Japanese company said Thursday the factory with a floor space of 900 square meters is currently under construction in the premises of the No. 1 plant of its local subsidiary, PT. Hitachi Construction Machinery Indonesia, in Bekasi, east of Jakarta.

The factory will dismantle, clean and repair used parts such as hydraulic cylinders, pumps and traveling equipment for them to be remanufactured and sold in Southeast Asian countries as products equivalent to new in performance at low prices.

Hitachi Construction Machinery said recycling in Indonesia has so far been limited to components for the domestic mining industry, while demand from other Southeast Asian countries has to be met with imports from Japan.

The new factory will enable the company to provide recycled parts at about half the price of brand new products with fewer concerns about cost and other issues arising from delivery and transport.

Hitachi Construction Machinery aims to rack up sales of 400 million to 500 million yen in fiscal 2023 in its recycling business in Southeast Asia.

The company is also seeking to reduce carbon dioxide emissions by 23,800 tons and industrial waste by 9,500 tons in fiscal 2022 by promoting the recycling of used cars and industrial machinery components. (IDFinancials/Kyodo)

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