By 2001, Cleveland-headquartered EUCLID-HI-TACHI HEAVY EQUIPMENT, INC. will be a wholly owned HITACHI CONSTRUCTION MACHINERY CO., LTD. company. The world's third-largest manufacturer of dump trucks used in mining now is jointly owned by AB VOLVO (60 percent). However, Hitachi Construction and its Swedish partner have become competitors in the international construction machinery market with Volvo's acquisition of a South Korean earthmoving equipment maker, and that change apparently has affected their Euclid-Hitachi Heavy Equipment relationship. Industry sources estimate that it will cost the Japanese company roughly $41 million to buy out Volvo's share in Euclid-Hitachi Heavy Equipment, which had 1997 sales around $173.6 million. Hitachi Construction initially acquired a 19.5 percent stake in what became Euclid-Hitachi Heavy Equipment in January 1994. The joint venture has production facilities in Ontario, Canada.
With machine tool exports to East Asia in a tailspin, HOWA MACHINERY, LTD. is putting more emphasis on the American market where it has had little success to date. The Nagoya producer has named MITSUI MACHINE TECHNOLOGY, INC. of Glendale Heights, Illinois as the exclusive distributor of its compact NS 30 vertical machining center. Howa Machinery is hoping that MMTI, a MITSUI & CO., LTD. subsidiary, will sell 30 MCs in the first year and 100 annually after three years. The primary customers for the NS 30 are appliance and automotive parts manufacturers.
An exchange rate of ¥121=$1.00 was used in this report.