TOCHU Corporation has made a significant move in the mining equipment sector. The company announced it will increase its stake in Hitachi Construction Machinery (HCM) to 33.4%. This is achieved by purchasing shares from a special purpose company associated with Japan Industrial Partners (JIP), using an affiliated entity. This acquisition cements ITOCHU as the largest single shareholder in HCM.
Simplified Share Acquisition and Corporate Relationships
Previously, ITOCHU held a 20.4% stake in HCM, which it has maintained since August 2022. With the new acquisition, ITOCHU’s stake rises to 33.4%. The transaction involves HCJI Holdings, Ltd (HCJI), a joint venture equally owned by Citrus Investment GK (a wholly owned subsidiary of ITOCHU) and JIP’s special purpose company. HCJI will take over JIP’s shareholding, further consolidating HCM’s control outside of Hitachi Ltd. Hitachi Ltd, once the primary owner, reduced its share from 25.4% to 18.36% in late 2025. HCJI now holds 25.99%. HCM has announced plans to rebrand as LANDCROS Corporation in 2027, signalling further moves away from the Hitachi brand.
In the lead-up to this change, Citrus acquired an additional 0.4% of HCM shares in early February 2026. The completion of this transaction depends on regulatory approval, expected between February and April 2026. HCJI’s acquisition of JIP’s shares should be finalised by April 2026.
Transition: From Ownership Changes to Strategic Partnerships
These changes in ownership are more than financial manoeuvres; they strengthen the partnership between ITOCHU and HCM. ITOCHU has committed to supporting HCM’s medium- and long-term growth, as well as its efforts to enhance corporate value. The capital alliance, formed in 2022, has already led to closer collaboration, with ITOCHU providing business and management support. With the increased shareholding, ITOCHU plans to play a more active role in HCM’s transformation and growth strategies.
HCM’s Growth Plans and Partnership with ITOCHU
HCM is pursuing sustainable growth through its medium-term management plan, ‘BUILDING THE FUTURE 2025’. The plan focuses on four pillars: Innovative Solutions, Value Chain Expansion, Expansion of Operations in the Americas, and Strengthening People and Corporate Capabilities. The company intends to accelerate global expansion under its new brand, LANDCROS, starting in April 2027.
ITOCHU will continue to support HCM’s brand transformation and strategic initiatives. In key markets like North America, the two companies will collaborate to boost sales, rentals, and finance businesses. They will also pursue mergers and acquisitions and explore new business areas. ITOCHU’s expertise in management, governance, logistics, finance, and ESG will help reinforce HCM’s foundations and improve its global competitiveness.
Competitive Landscape and HCM’s Position
The mining equipment industry is highly competitive. HCM faces tough challenges from major players such as Komatsu, Caterpillar, and Liebherr, as well as rapidly growing Chinese firms like XCMG and SANY. Despite this competition, HCM has carved out a niche by advancing key technologies and solutions.
HCM’s Innovations and Industry Comparisons
HCM stands out for its expertise in hydraulic excavator maintenance and teleoperation technologies. The company was the first to introduce a battery trolley large mining truck—the EH4000AC-3 Battery—currently operating at First Quantum Minerals’ Kansanshi mine in Zambia. HCM is also testing a hybrid dump truck in South Africa, with commercialisation targeted for FY2030. This innovation is a retrofitted EH4000AC-3 model.
While competitors like Komatsu and Caterpillar focus on autonomous equipment and electrification, HCM’s early adoption of battery trolley technology gives it a unique edge. Additionally, HCM has created a mining ecosystem by integrating maintenance and service provider HEPI, wear parts company Bradken, and Wenco, a leader in fleet management, open autonomy, and fatigue management. This integrated approach positions HCM as a technology leader among its peers.
Recent Orders and Performance: Sales Figures and Notable Contracts
HCM’s latest financial results for FY2025 Q3 show a year-on-year decline in revenue from the Americas OEM business, while sales in Oceania, Europe, and Asia remained stable. Excluding foreign exchange effects, overall revenue was flat, supported by higher selling prices. Mining accounts for about 20% of HCM’s total sales. However, sluggish resource prices and a stronger yen have led to lower revenue for both new machines and parts and services. Revenue for mining in FY2025 Q3 was 191.8 billion yen, down from 285.8 billion yen the previous year. Of this, 36% came from new excavators and trucks, and the rest from parts and services.
Recent major orders include a fleet of 30 EH4000AC-3 mining trucks for operations in Uzbekistan and Western Australia. At FQM Kansanshi in Zambia, HCM is delivering 42 EH4000AC-3 trucks for trolley operation as part of the S3 expansion. The company is also supplying two EX8000-7 excavators to a mine in Peru, marking the first delivery of this model in South America.
Implications for HCM’s Future and Industry Outlook
ITOCHU’s increased stake in HCM signals a new phase for the company, with greater support for innovation and growth. The strengthened partnership is expected to drive HCM’s brand transformation, global expansion, and technological leadership. As the mining equipment industry evolves, HCM’s focus on advanced solutions and integrated services will be crucial in maintaining its competitive position. The transition to LANDCROS Corporation in 2027 will further reflect HCM’s ambitions for global reach and industry leadership.