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Business trends

Komatsu, Hitachi Construction turn China into export hub

Japan's heavy equipment makers tap excess capacity with eye on other markets

Komatsu began exporting products from China in the second half of fiscal 2021. (Photo courtesy of the company)

TOKYO -- Major Japanese construction equipment manufacturers such as Komatsu and Hitachi Construction Machinery are turning China into an export hub for general-purpose products.

Faced with a shrinking Chinese market for hydraulic excavators and other equipment amid a slowdown in infrastructure investment, Japanese suppliers with local production facilities are reassessing their output and boosting exports. With China's continued advantage as a production hub in terms of ease of parts procurement and labor costs, companies are looking to take advantage of the excess capacity.

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