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Hitachi Limited: Construction Machinery
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In 2021, Hitachi Limited was reconsidering its ownership of Hitachi Construction Machinery (HCM). The decision about HCM's future was one of the last steps in a more than decade-long effort to reorient Hitachi from a manufacturing conglomerate to a service-oriented company. HCM was a global player in the construction and mining equipment business, and although it no longer relied on Hitachi for product technology, Hitachi's technological capabilities might once again become more valuable to HCM as automation and electrification of construction and mining equipment gained importance. Would there be greater synergies from more closely integrating HCM with Hitachi's other businesses, or would both sides be better off if HCM was completely independent?