ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Machinery & Industrial Equipment

Hitachi offers preventive healthcare in China -- for excavators

Japanese industrial group builds on internet of things partnership with Tencent

Hitachi Construction Machinery says its oil sensors monitor excavators' lifeblood, helping predict breakdowns before they happen.    © Reuters

BEIJING -- Hitachi Construction Machinery will bring an artificial intelligence service designed to predict excavator malfunctions to China, as the Japanese company looks to build on its group's partnership with Chinese internet giant Tencent Holdings.

The monitoring service, called ConSite OIL, becomes available in China next month, CEO Kotaro Hirano said Tuesday.

Hirano told reporters here that his company aims to work with Tencent on sharing "a wide range of information not limited to construction machinery."

"We will think of ways to use construction machinery even more efficiently," he said.

Hitachi Construction has offered remote monitoring for excavator engines in China since 2014 that most of the company's clients there already use. ConSite OIL supplements this service with sensors that monitor engine oil and hydraulic fluid in the machines.

"By extending our monitoring to oil, which is the equivalent of blood in the human body, we can now predict malfunctions in more than half of key components," Hirano said.

ConSite OIL is already available in European markets and Japan.

Parent company Hitachi announced a partnership last year with Tencent on using "internet of things" technology -- which links machines into data-sharing networks -- in construction, manufacturing and other sectors.

Hitachi seeks to expand its growth in China. For Tencent, the move forms part of a push beyond consumer-oriented services like social media and digital payments into industrial services.

The Chinese market for excavators soared 40% in 2018, local media report, as the government raised infrastructure spending to lift the economy. Hirano predicted the market will shrink slightly in 2019, citing low utilization rates of construction machinery in the country and the U.S.-China trade war.

Chinese manufacturer Sany Heavy Industry was the country's top player in excavators last year with a 23% share, followed by U.S.-based Caterpillar and China's state-owned XCMG.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media