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GROUND CONTROL THE MAGAZINE OF HITACHI CONSTRUCTION MACHINERY (EUROPE) NV RELIABLE SOLUTIONS ISSUE 2 SUMMER 2005 WWW.HCME.COM

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GROUNDCONTROLTHE MAGAZINE OF HITACHI CONSTRUCTION MACHINERY (EUROPE) NV

RELIABLE SOLUTIONS

ISSUE 2 SUMMER 2005 WWW.HCME.COM

Ground Control 2 met photo.qxp 7/22/2005 4:05 PM Page 1

GROUND CONTROL02

GROUNDCONTROLTHE MAGAZINE OF HITACHI CONSTRUCTION MACHINERY (EUROPE) NV

CONTENTS04 NEWSAll the latest transaction news from every country where Hitachi offers reliable solutions

07 SHOW BUSINESSA review of all shows where Hitachi has exhibited so far this year, and a preview of what’s still to come

09 A DAY IN BRETAGNEGround Control experiences after-sales and servicing, French-style, courtesy of local Hitachi dealer Cobemat

12 GOING WHERE NO OTHERS HAVE GONE BEFOREIf you want to get in (and out) of the tightest spots, look no further than the new range of short-tail-swing mini-excavators

14 DIGGING DEEP AND RIDING HIGHFinnish materials-handling technology like you’ve never seen before and in temperatures you wouldn’t believe

18 ARABIAN MIGHTReclaiming the seabed to build new cities might sound ambitious, but with the power of Hitachi machines,anything is possible

22 MOVING HEAVEN AND EARTHThe rise and rise of HM Plant, the UK’s sole importer of Hitachi Construction Equipment

26 PEOPLE POWERWhat you didn’t know about Hitachi’s factory in Amsterdam. We take a quick tour with Hitachi’s ProductionManager Tonny Engels

30 MAKING THE BEST AFFORDABLEFree up your cash flow with a tailored financial solution from Zaxis Finance

32 KNOW HITACHIThe world of Hitachi is far more expansive than most people think. Ground Control profiles Hitachi Ltd., theorganisation that comprises almost 1,000 separate companies and produces over 20,000 different products

34 DEALER LISTINGA European wide Hitachi Construction Machinery (Europe) NV dealer directory for your reference

Ground Control is published two times a year and is circulated among 75.000 readers. Hitachi Construction Machinery (Europe) NV, Siciliëweg 5, 1045 AT Amsterdam, The Netherlands, Telephone: +31-(0)20 44 76 700,Fax: +31-(0)20 33 44 045,E-mail: [email protected]: www.hcme.comEditors: Hitachi Construction Machinery (Europe) NV:

Raymond Hendriks, Sander GesinkCoordination: Somacon, www.somacon.nlDesign: RBP, www.rbp-ltd.co.ukPhotography: Simon Robinson, Double RedTranslation: Ycomm Europe, www.ycomm-europe.comPrinting: Plantijn Casparie Utrecht BV, www.plantijncasparie.nlCirculation: DHL Global Mail, www.dhl-globalmail.nlCopyright: Hitachi Construction Machinery (Europe) NV 2005, all rights reserved. Reproduction in whole or in part is forbidden except with the written permission of the publisher. While everyeffort is made to ensure the accuracy of information published in Ground Control, HitachiConstruction Machinery (Europe) NV can accept no responsibility for inaccuracies or omissions. 14

ISSUE 2, SUMMER 2005

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HM PLANT APPOINTS HOSPLANT AS A MINI-EXCAVATORDISTRIBUTORHM Plant has announced that it has appointed HOS Plant to distribute mini and midi-excavators from the Hitachi Zaxis range. The new network is effective as of April 2005.

HM Plant is one of Europe's leading distributors of Hitachi Construction Machineryand Britain's number one supplier of mid-range excavators. HOS Plant, the formerTakeuchi dealer, will now act as HM Plant's UK sub-dealer of the popular Zaxis modelswith an operating weight of up to 8 tonnes.

The Colchester-based company will cover the areas of Essex, South Suffolk, EastHertfordshire and north-east London.

HOS Plant Director Adrian Mays said: "We are pleased with the distributionagreement that we have finalised with HM Plant. The deal will help to establish thelong-term future of HOS Plant. We are already looking forward to serving our manyexisting and future customers with mini and midi-excavators from the Hitachi Zaxisrange."

This latest move by HM Plant comes just days after construction industry salesstatistics confirmed that the company continues to dominate the mid-range crawlerexcavator category.

"HM Plant has maintained its position in the mid-range sector for 21 of the past 23

ALL OVER THE WORLD, WE’RE WORKINGTO HELP YOU KEEP WORKING. HERE’S ASUMMARY OF SOME OF THE LATESTSTORIES WHERE HITACHI IS MAKING THEDIFFERENCENEWS

years in the UK," explained HM Plant Operations Director David Hearne. "The growthin the mini and midi-excavator market continues unabated and, now that HOS Plant ison board, this is an area which is at the forefront of HM Plant's future development."

FUEL EFFICIENCY DETERMINES THE CHOICEFuel efficiency, high quality, good service availability, and reliable dealershiprelations determines the choice of machinery for Swedish contractor MikaelsGrävtjänst AB.

Like many other contractors the small Scandinavian company relies on anefficient machinery fleet to make the business competitive and successful. With 20excavators in operation, fuel efficiency, operational timeand good relations with the dealership and serviceorganisation can make the difference between successand failure.

Mikael Hansson, the owner of the companyexplained: "Some years ago, I made a systematic surveyof all our excavators, their fuel efficiency, and time inoperation.”

This survey has since become the basis for Hansson’sinvestment decisions. Today, Hitachi holds an obviousdominance in the company fleet. "Using Hitachi means thatour costs for fuel have decreased by between five andeight per cent, and the operational time is as close to100 per cent as is possible," said MikaelHansson.

In addition, Hansson points tothe good relationship

between himself and the dealer in Sweden. "For a contractor company like mine,it's essential that the relationship is open and honest in both directions. I dependon a responsible culture for that relationship – and that's what I get. I am veryhappy about it and pleased to let everyone know about my experiences."

The excavators are supplied and delivered by Swedish Hitachi dealer,Delvator AB.

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FLYING HITACHI: AN EX8-2B MINI-EXCAVATOR TAKES FLIGHTThe canton of Ticino is the Swiss gateway to the south. The landscape captivateswith its charm and fascinates because of its lifestyle and the Italian language. Thesouth awaits you on the other side of the Alps: a mild climate, palm trees growingon immaculate shores, secluded valleys, romantic villages and picturesquealleyways. But the Alpine world is never far away. Towering mountains, expansiveplains, nature and culture, towns and the countryside combine to form a fascinatinglandscape brimming with contradictions.

Local construction work is dominated by the creation of the new rail link throughthe Alps. Measuring 57 kilometres in length, the world's longest tunnel is currentlyunder construction in the Gotthard base tunnel. From 2011, the new, high-speed linkthrough the Alps will offer a significant improvement in European travel andtransportation.

In the field of construction machinery, the canton of Ticino is without doubt‘Hitachi country’: three Zaxis 500 hydraulic excavators work in the rock quarries ofthe Calanca valley where its renowned gneiss is prepared for world sales markets.Numerous construction companies such as Gamboni & Salmina SA in Gordola andContrabi SA in Biasca have chosen Hitachi for their construction machinery fleet.

Excavators with narrow undercarriages are preferred for mountainous regions toguarantee transportation to even the most remote village. However, the smallest ofthe mini-excavators, the EX8-2B (which weighs only 810 kg) has never hadtransportation problems. Its most striking feature is a total width of only 720 mm,which to increase stability under load, can be telescoped out to a maximum of 900mm. Because of its slender dimensions, the excavator is perfect for building work onhouses and holiday apartments.

The Ticino-based sales office of Probst Maveg AG has already supplied seven ofthese excavators to customers, two of them to the company Heli-TV. This hasenabled the Lodrino-based helicopter company to successfully enter the plant hirebusiness. In addition to transporting passengers, animals and timber etc., thecompany's six helicopters are now used to ferry the EX8 excavators around.

David Frapolli, Ticino sales office manager of Probst Maveg said: "Heli-TV hasuncovered a gap in the market. Thanks to their low weight, these minis can be flowneasily to far-away mountain valleys in a matter of minutes by any helicopter. Thetime savings on construction sites and the excavators' diverse applications ensurethat the EX8s notch up many flying and operating hours."

Order online at www.hcme.com

GET READY FOR SUMMER!It's not all work you know – even Hitachi Construction Equipment owners andoperators need to have a holiday and relax on the beach. Well how about taking oneof our high quality specially branded beach towels along with you? They are made of100 per cent ultra absorbent cotton and available in colours black and white. They arealso a massive 180 cm x 100 cm in size, which should ensure you a decent spot on acrowded beach.

If you feel that you don't want to take Hitachi away with you on holiday, why notbuy one for someone you know is going away. At just Euro 17.50, they will make afantastic gift for your customers.

This limited-edition Hitachi beach towel can only be obtained through the Hitachiwebsite www.hcme.com by clicking on the link for HCME SHOP. After entering the'shop', you will be able to buy the towel. See you on the beach.

EURO 17.50*

*Prices are valid from 01-07-2005 until 30-09-2005 and as long as the stock lasts

including VAT

BEACH TOWEL OFFER!

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In February, Lämmle Recycling GmbH, started demolition of an ancient brewery atAltenmünster in Germany. To execute the contract quickly and efficiently thecompany used the new Hitachi Zaxis 500 LC, equipped with a unique Genesis‘Quick-Connect-System’.

By employing such a world-leading innovation, the company is now able tochange booms in only a few minutes. Work on the Altenmünster site showed theenormous benefit of the system when Lämmle changed from a long demolitionboom to the shorter earth-moving/demolition alternative, five or six times a day.

The demolition enterprise had the advantage of being able to use the appropriatetool with minimum effort. During the demolition of the upper floors, the long frontwas used so that heights of 26m could be reached. Within a few minutes, andwithout leaving the cabin, the driver was able to switch to the excavation boom (orstraight demolition boom).

A Lämmle company spokesperson cited several crucial reasons in favour of theHitachi Zaxis 500 LC: “With mechanical exchange systems, several hours areusually necessary to change booms. This means much greater expense. GenesisQuick-Connect reduces this to about 20 euro for every exchange, which is just afraction of the usual cost. The gain in safety is an additional plus, and the higherinvestment in this system will undoubtedly be recouped within a few months.”

The excavator was supplied and delivered by Hitachi’s German dealer Kiesel GmbH.

NEWS

In February, the first two crawler carriers in the Netherlands were delivered tosubcontractor Van Diepen in De Weere.

Van Diepen is a company in the agricultural sector that can look back on a historyof more than 60 years. The company was transferred from father to son and then tograndson Kees van Diepen, who now runs the company together with two partners.They have four people working for them.

Due to a big project for reallocation of land, Van Diepen has had to processapproximately 100,000 m3 of soil this year, which can only be done in the autumn,winter and early spring because of the mowing of grass and the growth season ofbulbs. During dry periods Van Diepen processes the soil with tractor and dumper,however in winter – and especially during wet periods – this is impossible. Thismeans that Van Diepen has to look at other possibilities to get the job done.

Because Van Diepen already owns several Hitachi excavators (EX215LC,FH130W.3 and W130) the choice of machinery wasn't difficult. The EG70R crawlercarrier turned out to be very suitable because of its unique execution with a 360-degree rotating upper structure. Because of this system the undercarriage remainsin the same position to prevent damage to the ground.

With the EX215LC and two crawler carriers, Van Diepen can remove the soilmuch quicker than before. The idea was to use the machines for about 500 hoursthis year. However, after only five weeks the machines have already worked 250hours and, so far, have performed extraordinarily well.

FIRST CRAWLER CARRIERS IN THE NETHERLANDS

HIGHER DEMOLITION EFFICIENCY: BOOM CHANGING IN MINUTES

TOP LEFT: LÄMMLE ENTERPRISE DEMOLISHING THEANCIENT ALTENMÜNSTER BREWERY BUILDING BYUSING AN HITACHI ZAXIS 500 LC, WITH GENESISQUICK-CONNECT FOR BOOMSBOTTOM LEFT: GENESIS QUICK-CONNECT

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SHOW BUSINESS

DURING 1 TO 5 MARCH 2005 THE SMOPYC EXHIBITION TOOK PLACE IN THE EXHIBITION CENTRE AT FERIA DE ZARAGOZA.THE EVENT IS CONSIDERED TO BE THE MOST IMPORTANT FAIR ON THE IBERIAN PENINSULA AND IS HELD EVERY THREE YEARS

SMOPYCWith a display area of 146,000 m2, 1,582 exhibitors presented their products and

approximately 79,000 visitors visited the exhibition. It was the first time Hitachihad been present as an independent manufacturer.

Hitachi displayed its products on an inside stand (660 m2) and an outside stand (1000m2) and over a demonstration area of 300 m2. The huge amount of space enabled Hitachito show its complete range of machines, which included crawler excavators (ranging from

0,8 tonnes to 85 tonnes) three wheeled loaders, a EH1100 rigid dump truck, a Zaxis350LCK demolition excavator, a Zaxis 160LCT telescopic crane and of course thelatest short-tail mini excavators.

With the help of the Spanish dealers, Hispano Japonesa de Maquinaria, SerexS.A. and Moviter Ltd, the exhibition was a great success and achieved someinteresting and important orders.

STILL TO COMERENTEX 2005The next RentEX exhibition and conference will take place on 22-24 September at theMECC, at Maastricht in The Netherlands. The RentEX exhibition presents visitorswith the widest selection of rental equipment ever assembled for a single exhibition.

Product sectors on display

MATEXPO 2005From 7-11 September the MATEXPO2005 will take place at Kortrijk Xpo in Belgium. Theinternational trade fair for construction industry machinery has already reached its 31stedition. With 126,000 m2 of available display space, 362 exhibitors and 1,055 brands,MATEXPO has developed into the largest trade fair of its kind in the Benelux, with animpressive number of visitors: 34,102 from 44 countries.

Today, MATEXPO offers construction professionals a complete overview of what isavailable worldwide in terms of machines, techniques and materials for the constructionindustry, road-building, general industry, recycling and public works.

INTERMATFrom 24-29 April 2006 INTERMAT will be held in Paris-Nord Exhibition Centre in France.

INTERMAT is the meeting place for professionals in civil engineering and construction.On 300,000 square metres of exhibition space all the major innovations in constructionmachinery are being introduced. There will also be equipment from around the world.

Hitachi, of course, will have a big stand (3,500m3) where it will show new machinesand new innovations. Together with its French dealership, Hitachi guarantees to presentvisitors with a show they will never forget.

• General construction equipment and tools

• Rental software

• Events equipment

• Audio-visual equipment

• Catering equipment

• Temporary building

• Access equipment

• Landscaping and ground care equipment

• Safety equipment

• Homeowner/DIY equipment

• Cleaning equipment

• Heating/generating/air-conditioning equipment

• Lifting and material handling equipment

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SHOW BUSINESS

THE SAMOTER EXHIBITION WAS HELD FROM 4 MAY TO 8 MAY. SAMOTER IS THE MAJOR INTERNATIONAL EVENT OF 2005AND IS DEDICATED TO COMPANIES THAT OPERATE EARTH MOVING MACHINERY, THE BUILDING SITE AND BUILDINGINDUSTRY SECTORS

SAMOTERIt is an essential event for operators and decision makers who want to succeed in an

increasingly specialist and competitive market. Future developments and technologicalinnovation come together at Samoter and this helps the exhibition keep pace with thechanging requirements and expectations of the market. It is also a vital landmark forunderstanding the evolution of the building site sector, one of the significant industriesthat drive world economy. Latest generation machinery, products, services andtechnologies, in the earth moving and building site fields, are the key aspects of theSamoter 2005 exhibition.

Hitachi was present at the Samoter exhibition with a 3,270 m2 indoor stand plus a 547m2 outside stand. A total of 31 machines were shown on the impressive Hitachi stand.Special attention was given to the new series of short-tail mini-excavators and thecombination of EX1200-5C excavator with EH1700 dump truck.

Many visitors were welcomed to the stand and enjoyed the hospitality before learningmore about Hitachi products. The new Hitachi movie attracted a lot of attention – notmany people see an EX5500 and an EH5000 operating to maximum capability every day.

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INCREASED DEMAND FOR HITACHI PRODUCTS IN FRANCE MEANS EXTRA RESPONSIBILITY FOR THOSE IN CHARGE OFAFTER-SALES AND SERVICING. GROUND CONTROL SPENT A DAY IN THE COMPANY OF DIDIER PADOVANI, TECHNICALMANAGER OF FRENCH HITACHI DEALER COBEMAT

A DAY IN BRETAGNE

The construction sector is booming in France as the industry races to meet massivedemand for new (and second) homes and the infrastructure that surrounds them.

A shortage of homes has sent property prices spiraling and in the past eight yearsalone, the average price of property has risen 86%.

Over 330,000 new apartments were built last year and in 2005 that number is setto increase again by 10% as the tax breaks accorded to ‘buy to let’ property ownersattract investors from France and many overseas countries as well. This boom is notjust restricted to coastal or mountain regions either as many people, in search of anew life or place in the sun, are buying and restoring old properties, and attemptingto live la vie Française.

The knock-on effect of all this building is an increased requirement for roads,parking, cabling, piping and more excavators to make these necessities a reality. Afterall, this large country only has a population of 62 million, 20% of whom live in the Ilede France (Paris region). Whereas the population density of a country like Holland is393 people per square kilometre, in some regions of France it is as low as 14 peopleper square kilometre. Consequently, there is definitely room to grow, which is all goodnews if your business is selling Hitachi construction machinery.

The French market is healthy, to say the least. Last year, sales consisted of 7,605mini-excavators, 2,816 crawler excavators, 1,516 wheeled excavators, 2,258 wheeledloaders and 49 rigid dump trucks. France’s Hitachi sales territory was only established

in 2003 but more than 1,000 new machines have already been sold through itsnetwork of 15 dealers. In 2004, the market rose by about 22-38% according toproduct range and the most sought after Zaxis models are the Zaxis 210 and Zaxis US type.

According to Benoit Gobard, marketing representative in France, having a wellorganised and reactive after-sales operation is vital to the long-term success ofHitachi in France. “For us, the continuing perception of quality and reliability isparamount, and because after-sales is a very successful area of our business, goodproduct support is essential,” he explained. “We have invested heavily in training and more than 90% of our technicians are now sent to Amsterdam for specialisedcourses.”

Didier Padovani, Technical Manager of French Hitachi dealer Cobemat, is a goodexample of these high standards. His training lasted seven years (as long as that ofmany doctors!) between the ages of 15 and 22 and even at 35-years-old he is stilllearning. A CAP (Ceriticat d’Aptitude Professionnelle) was followed by a BEP (Brevet

CUSTOMER SERVICE

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d’Etudes Professionelles) and the famous Baccalaureate qualification, which then led tohis BTS (Brevet de Technicien Superieur). Naturally, the training was supplementedthroughout with a practical, ‘on the job’ apprenticeship.

Following his first job as a mechanic, Didier joined Cobemat in 1999 and worked hisway up to become workshop manager. He is responsible for seven technicians, four ofwhom are on the road. When Didier finds time to visit customers himself, they are alwayshappy to see him because they know they are dealing with the ‘top man’. Cobemat hassold more than 130 machines since the beginning of 2003 and the dealer’s geographicalarea actually covers Brittany but also a part of Normandy and Pays de Loire. Didier is aproud man and wouldn’t be able to do his job if he didn’t wholeheartedly believe in theproduct.

“My job’s great,” he said. “But before I worked with Hitachi, the other brand I wasinvolved with wasn’t as successful or reliable and that made life difficult for me. Sincewe’ve been using Hitachi machines we’ve found them to be very reliable. In the beginningthere were the usual teething troubles but compared with our previous suppliers we hadthe benefit of good lines of communication and great product support. If we need

DIDIER PADOVANI, TECHNICAL MANAGER OF FRENCH HITACHI DEALER COBEMAT, IS A GOOD EXAMPLE OFTHESE HIGH STANDARDS. HIS TRAINING LASTED SEVEN YEARS (AS LONG AS THAT OF MANY DOCTORS!)BETWEEN THE AGES OF 15 AND 22 AND EVEN AT 35-YEARS-OLD HE IS STILL LEARNING.

Hitachi’s help they’re always there. The support is great, the reliability and quality of themachines are second to none, and as a consequence of this, we’re growing as a companyin order to meet the increased demand for Hitachi products.”

This became apparent as soon as we visited Didier’s first customer of the day in theLaval area: a big recycling company that was using a ZAXIS 160W wheeled excavator forwaste separation and clearing duties.

On plugging in his Dr ZX diagnostic equipment and downloading a plethora of figuresfrom the Zaxis’ many electronic sensors, Didier remarked that this particular machine hadcompleted 5,000 hours of service since July 2003, not that this affected its performancein any way. There’s not much chance of a flat tyre from a piece of broken glass or a pieceof metal affecting its phenomenal work rate either; this particular model has a specialmousse and carcass in the tyres to protect against punctures.

The operator, David Carre, was extremely skilled and was determined to put on a goodshow for the camera. With lightning speed, he was separating and loading pallets, plasticsheets, office chairs, cardboard, car windshields, piping and all sorts of paraphernalia intodifferent bins for wood, steel, and plastic. With a glint in his eye, he separated an old

CUSTOMER SERVICE

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mattress from its wooden base, then the base from the metal framework and finally, afterhe had deposited the wood and metal in the relevant containers, proceeded to clasp themattress in the special attachment claw grab and use it as a broom to ‘sweep up’ all thedust . Now that’s recycling!

“The Zaxis 160W is a great excavator,” said David. “I used to operate a Germanbranded wheeled excavator but I much prefer this machine; the controls are more precise,it’s easier to drive, the grab attachment is fantastic, and it’s incredibly manoeuvrable.”

It was also good for a few thousand hours more service because Didier didn’t have tomake any adjustments to the machine, so he let David return to his work and set off forthe next destination: the Carrière des Vallons granite quarry in Louvigne de Bais, wherean EX1200 has completed 2,300 hours of service in just over a year.

In the early afternoon sun, the different colours reflected in the rock face wereamazing. A succession of rigid dump trucks were being loaded with medium and large-sized rocks by a single EX1200, operated by Hubert Joliviot, 49, who has been drivingexcavators for 22 years but has only had the pleasure of using the EX1200 for the past 13months.

“I’m extremely pleased with the Hitachi,” he said. “It works very well and is the firstone of its kind on French soil. It’s very comfortable, especially with the climate control insummer. This model is a lot more powerful than the one I had before and is more efficient,so overall I’m very pleased with it. There haven’t been any problems to date, which is whyDidier is only here today to carry out a routine diagnostic check.”

After a quick download and a short discussion about hydraulics, Didier leaves Hubertto continue his work. The rocks will be used in road construction and as support for traintracks. There’s more than 30 years of work still left in the quarry, so Hubert has plenty stillto do. Fortunately, he has the machine for the task.

Didier’s final call was to a Zaxis 460LCH that was carrying out an earth movingoperation on the outskirts of Rennes. The machine was bought from Cobemat by theSchmitt construction company, which is involved in building an underpass to relievetraffic congestion in the area.

Michel Lobbe is the happy operator who is trenching and grading slopes for anembankment. This is a virtually new machine that has only done 1,103 hours of service,so Didier didn’t spend long checking it at the job site. The machine was bought by Schmittto replace an ageing EX400 that had completed a staggering 28,000 hours of service. Asyou can imagine, Michel is extremely happy with his latest acquisition.

“I love this new Zaxis, it’s the quietest excavator I’ve ever operated and is massivelypowerful for its size. It’s got great traction and is easy to use, but then so was itspredecessor. It’s always nice to have something new though and this Zaxis certainly helpsme work more efficiently.”

In the background, Michel’s workmates teased him when he posed for pictures but itwas easy to detect a note of envy in their voices. He didn’t rise to the bait though, andremained inside the cab of the Zaxis. He’s guarding it closely, and who can blame him forthat?

As Didier returned to his immaculate support vehicle (which contained all manner ofessential tools, spares and servicing equipment) it was obvious that this was one of themore relaxing days in a busy working life. It had consisted of nothing more than post-operating checks, assessing of components to make sure everything remained within thecorrect tolerances and the all-important communication with the operators to obtainessential feedback on the machines’ performance.

With all three excavators ‘milked’ of their data by the famous Dr ZX, all that remainedfor Didier to do was return to the workshops and upload the figures from his Palmhandheld computer to Cobemat’s network. The information could be sent to Hitachi’sProduct Support department in Amsterdam if needed. It was a successful day’s work forthis skilled technician, helped in no small part by happy operators, reliable equipment anda quality after-sales service. After all, selling these machines is only the first step in along relationship with users.

Hitachi is there for the whole journey.

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PRODUCT NEWS

GOING WHERE NO OTHERS HAVE GONE BEFOREGROUND CONTROL LOOKS AT A NEW RANGE OF SHORT-TAIL-SWING MINI EXCAVATORS THAT CAN GET INTO THE TIGHTESTSPOTS. FOR THEM NO JOB IS TOO SMALL

In March 2005 Hitachi Construction Machinery (Europe) NV introduced a completenew range of short-tail-swing mini excavators for the European market. The new

range consists of four models: the Zaxis 30U-2, the Zaxis 35U-2, the Zaxis 40U-2and the Zaxis 50U-2.

With the introduction of the new machines Hitachi has not only improved thealready existing Zaxis 40U and Zaxis 50U, it has extended the range with the Zaxis30U-2 and the Zaxis 35U-2. This will improve coverage of a growing market demandfor short-tail-swing mini excavators.

The design of the new short-tail-swing machines is based around four maincharacteristics: stability, maintainability, durability and operator comfort.

STABILITYIn order to give the new short-tail-swing excavators optimum stability, a number ofstability-improving designs have been applied to the machines.

Firstly, the track frame and the enlarged counterweight have been made as heavyas possible to help lower the centre of gravity of both machines. Secondly, theswing post has been designed to be as light as possible and has been placed moretowards the centre of the machines. Lastly, a standard additional counterweightcan be used when the excavators are operated with a heavy attachment. When thecounterweight is attached to a machine, the upper structure only exceeds the trackwidth of the machine by a few centimetres. Without the additional counterweight,the machine is a true zero tail-swing machine.

MAINTAINABILITY As with all Hitachi machines, the U-2 series is designed to be trouble-free andrequire minimal maintenance. All components can be easily accessed.

Authorized service personnel can tilt the cabin or canopy to an angle of up to 50degrees (the widest in its class). This provides access to the main control valve andthe swing device. On the right side of the machines a convenient maintenance covermakes the battery, radiator, fuel tank and hydraulic oil tank all accessible.

All machines have a unique engine cover that can be opened by sliding itvertically. This is to ensure that the cover opening-radius does not exceed the widthof the excavator. This means daily maintenance can be carried out even in aconfined space. The engine cover also makes maintenance simpler because it does

not block daylight. When the cover is open, the engine oil filter, the engine oil inlet,water separator and air cleaner can be easily accessed.

On the rear, left side of the machine, there is second maintenance cover thatprovides access to the hydraulic oil pump and the pilot filter.

DURABILITYThe durability of the new machines has been improved in several aspects: themachines have a one-pin system to reduce jerking of the swing post. The upperstructure of the machine, on the front left and right corners, has been reinforcedwith D-shaped protection. Original HN bushings are used at all pin joints on thefront attachment to extend lubricating intervals to 500 hours.

OPERATOR COMFORT Excellent operator comfort contributes to the user-friendliness of the new range ofmachines and ensures that operators retain concentration for longer periods. Thenew ergonomic design incorporates air conditioning and shock-absorbing rubbermounts for the cabin.

All machines with cabins feature air-conditioning as standard, a radio (alsostandard) and a two-piece door that folds open to remain within the width of thetracks of the machine.

Regardless of cabin or canopy, all machines have a standard auto-idle system,foldable travel pedals and suspension seat with Hitachi logo. An LCD monitor thatprovides varying important operating information is placed on the right side in thefront of the cabin. Operators can check the monitor by looking slightly to the right.

Another important feature is the location of the second speeds switch. A switchlocated on the right console has replaced the existing button on the floor mat. Thismakes it possible to drive the machine at second speeds by using the pedals.

Despite many other minor improvements, the whole purpose of the new short-tail mini excavators is to do the job as quickly and as efficiently as possible. Afterall, time is money.

Zaxis 30 U-2 Zaxis 35 U-2 Zaxis 40 U-2 Zaxis 50 U-2

Operating weight with canopy kg 3260 3710 4610 4870Operating weight with cabin kg 3410 3860 4760 5020Net power kW / hp 22.3 / 29.9 22.3 / 29.9 29.8 / 40 29.8 / 40Max. bucket breakout force * kN 27.5 27.5 32.1 36.8Max digging depth * mm 3130 3460 3660 3860Max reach at ground level * mm 5170 5530 6050 6250Max dump height * mm 3130 3430 4040 4200

* cabin version with long arm

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NO JOBTOO SMALL

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DIGGING DEEP AND RIDING HIGH

SPECIALITIES

GROUND CONTROL TRAVELS NORTH TO FINLAND TO VISIT A REMARKABLE MATERIALS-HANDLING COMPANY WITH AN EQUALLY REMARKABLE RANGE OF PRODUCTS. WE’REHERE TO SEE VELI MANTSINEN, THE DRIVING FORCE BEHIND THIS COMPANY’S SUCCESS,WHO STARTED HIS CAREER HAULING TIMBER WITH A LOG HOOK IN THE FINNISH FORESTS

February may not be the best time of year to visit Finland. It’s bitterly cold (about minus 20 degrees Celsius) although byFinnish standards it is a mild winter. There’s snow everywhere, the sun is low in the sky and we’re driving north through

endless forests towards the Russian border. Our car’s winter tyres offer plenty of grip in the icy conditions but we’re keepingour speed down. There are income-related speeding penalties in Finland and the record offence so far cost the (admirably rich)driver 100,000 euros.

The land of 188,000 lakes is breathtakingly beautiful, yet sparsely populated. There are only 5.2 million people. That’s just17 people per square kilometre and 79 per cent of Finns are urban dwellers with one million of them living in the Helsinki area.Forestry covers 68 per cent of the countryside but it is important to have sustainable wood supplies when you consider thatthere are almost two million saunas in the nation.

We were on our way to visit Veli Mantsinen, a man who knows a thing or two about wood. He started his log-handling careerat the age of 11 when trees were felled with a frame saw and the timber hauled manually in the forest with a log hook. Thematerials-handling business he has established since then is testimony to his determination to succeed.

The Mantsinen Group is a family-owned company located in Liperi in eastern Finland. It was founded in 1974 and todayemploys about 300 people. Primarily, it manufactures materials-handling machines and harbour cranes for use at woodterminals, ports and industry. Anything that needs to be unloaded from, or loaded onto a ship, such as salt, clay, coal, sand,cereals, fertiliser, timber, gravel or scrap, is of interest to Veli Mantsinen. As an example, his company handles approximately30,000,000 m3 of round wood each year. That’s over 1,000 truck loads every 24 hours.

Veli was born in 1938 and, like a lot of young boys growing up in the countryside, earned money from cutting down trees.Ever the entrepreneur, he made extra cash by selling the cones from the trees he had felled. He attended farming college butcontinued forestry work with his brother until their father asked them to take over the family farm. Reluctantly they agreedbecause the timber-hauling business was so tempting. A few years later they decided to sell the farm livestock and began tohaul timber again using the tractors.

In 1974 Veli had a big bust up with his then boss about rates and was so angry that he offered his services to a rival company.There was only one contract available; the unloading of timber from railway wagons at a pulp mill. It was tiring work and noone wanted to do it but Veli had the idea of using an excavator to handle the logs.

“At first we bought the loading equipment ready-made. However, the booms and log grabs broke every two months, so finallymy brother and I decided to build the machines ourselves.”

Jukka Hamalainen, Mantsinen’s Sales Director, explained how and why the company chose to modify Hitachi machines formaterials-handling purposes: “Hitachi was chosen due to its reliability. It wasn't the cheapest but did offer the best returns onthe investment. There was also a good Hitachi dealer in our area. A deal was done to supply the upper-structure and the firstunits were made. In 2000, an agreement was made for Hitachi dealers to sell the units.”

It was a good time to see some of the machines in operation. Our first stop was at the Kantvik port in the south-west outskirtsof Helsinki where a Mantsinen 140 harbour mobile crane was in action. An operator was sitting in an extended and elevatedcab high above the tracks using a clamshell bucket to empty a barge that was full of rapeseed from the Netherlands.

There were two truck drivers ferrying the rapeseed to a local factory at a rate of about 100 tonnes an hour. However, theMantsinen 140 machine has the capacity to shift 400 tonnes per hour. The capacity of the Dutch barge was 2,350 tonnes ofrapeseed and it would take 16 hours to unload it.

The 140 is based on a Hitachi EX1200. The upper-structure and cabin is supplied by Hitachi, and the undercarriage and tracksare made in Mantsinen’s factory in Finland, as is the long front and cabin elevation equipment. The machine doesn’t just loadrapeseed though; there’s a pile of scrap metal nearby that reaches high into the sky (it will be sold to Korea for $50 a tonne andthen imported into Europe as shiny new cars). Behind it are 150,000 tonnes of coal that will fire the power stations, so it doesn’tlook as if the Mantsinen 140 will be standing still for too long.

It’s easy to see the benefits of this new material handling technology. Compared with a normal harbour crane it has betterloading efficiency, with less labour and auxiliary machines needed. This means a quicker turnaround time for a ship in harbour.There’s more flexibility and mobility because the machine is not fixed on rails and it’s also less susceptible to heavy winds asit has a better ability to load in severe weather conditions. Mantsinen is currently producing around 30 machines of this typea year and exporting these to Russia, Estonia, Latvia, Sweden, Poland, Austria, Turkey, Spain, UK, USA and Norway.

We continued our journey north towards the factory in Ylamylly and a look at the map reveals the town of Nokia, the name

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“HITACHI WAS CHOSEN DUE TO ITSRELIABILITY. IT WASN'T THE CHEAPESTBUT DID OFFER THE BEST RETURN ONINVESTMENT”.

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SPECIALITIESof Finland’s most famous brand. Nokia actually used to make paper and tyres beforemoving into consumer electronics. The company was close to bankruptcy about 20years ago and offered a buyout to rival company Eircsson, but Eircsson didn't wantto know. Big mistake.

We continued our journey past a frozen lake and glimpsed solitary figures fishingthrough holes in the ice. Occasionally, a couple of cross-country skiers would strideout on a forest path, ski poles in hand, prodding the ground rhythmically as theymarched briskly in the cold, crisp air.

When we arrived at the Kotka port on the south-east coast, we could feel thecold literally draining out of our bodies. With such a dramatic climatic variation (itcan be plus 30 degrees Celsius in summer and minus 30 degrees Celsius in winter)there are lots of factors to take into account when constructing roads, or housing,in Scandinavia. For example, water pipes have to be more than two metresunderground so they won't freeze; road construction needs extra insulation layersto stop the surface freezing and breaking into pieces; homes and offices are builtwith much more emphasis on insulation and are always triple or quadruple glazed.

As you’d expect, materials-handling equipment also has to be modified becauseof the extreme temperatures. The two Mantsinen 100 harbour mobile cranes (basedon Hitachi Zaxis 800s) operating there have special heaters that plug in at portsideand heat the hydraulic tank, engine oil, cooling system and the operator’s cab. It isall centralized so that the operators only have to plug into one power unit.

The 100s are unloading lumber with a special spreader attachment. The cabshave floor windows for better visibility and the operators can work safely andprecisely within an area of 50 metres without having to move the machine. They arefairly big machines but put them next to a traditional fixed harbour crane and theyare dwarfed in comparison. However, they are much more efficient.

Whereas the big machine can lift weights up to 26 metres high, the much smallerHitachi-based version can lift the same weight (up to 13 tonnes) for something like24 metres. However, it is more precise, has a far superior cycle speed and can placethe load exactly where the operator wants inside (or outside) a ship's hold. Thismeans that there is no need for additional labour. The large movement area of thecab elevator makes it possible to place the operator in the right position for eachdifferent type of job. In this instance, it can move up to 13 metres above groundlevel and almost 10 metres horizontally. The crane itself has a reach of 34 metres(biggest model Mantsinen 160).

As well as increased cycle times, there are also less workers involved in theunloading process and less damages to the cargo due to automatic clamping and

release of unit loads in the holds and on the quay. Mantsinen uses a wide range ofwork attachments including bulk material buckets, orange peel grabs, magnets,roundwood grapples, paper roll pincers, pulp bale and lumber spreaders.

It takes Mantsinen about three months to build one of the machines from startto finish and they are transported to customers in just three pieces (boom, tracksand body) on special lorries. In fact, on our way to our final working jobsite of theday, a round wood handling terminal on the Russian border, we passed one of themheading in the other direction, the flashing light and Leveä Erikois Kuljetus noticewarned all Finnish speakers of a wide load heading in their direction. We droveclose to the kerb and let the 60 tonnes machine pass safely by.

At the Pelkola terminal we were surrounded by gigantic stacks of timber that hadcome from Russian forests in closed railway wagons. Timber is cheaper in Russiaand the latest batch of beech would be used for making paper. It had been loadedin Russia by tractors, forestry machines, ropes, cranes and even by hand.

Four 60-tonne machines were working; two of them directly over the top of thewagons, which is the most efficient way to shift logs from one wagon to another.This position gives the operators better visibility and, consequently, faster cycles.The round wood grapple attachments had been designed to fit right into thecarriages, the machines are actually capable of carrying a lot more wood, but thiswas a precise and detailed operation. On the Russian side the logs had been boundwith steel wire; these had already been cut but the Finnish operators still had toclasp, pull out and dispose of the wire before being able to move the logs. It wasn’ta problem: the precision afforded by the attachment would have allowed theoperator to undo a pair of shoelaces, if necessary.

Watching the four machines working together was a privilege and we were sorryto leave when the light faded, but we had held up operations for long enough. Thenext day at the factory we were able to see the workforce in operation on thecompany’s production line, cutting, welding, drilling, bolting, spraying and polishingthe latest customer machines.

Away from all the noise and dust is Veli Mantsinen’s office and inside it is an oldlog hook. He keeps it there to remind him of how he started 50 years ago.

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“AT THE PELKOLA TERMINAL WE WERESURROUNDED BY GIGANTIC STACKS OFTIMBER THAT HAD COME FROM RUSSIANFORESTS IN CLOSED RAILWAY WAGONS.TIMBER IS CHEAPER IN RUSSIA AND THELATEST BATCH OF BEECH WOULD BE USEDFOR MAKING PAPER”

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JOB REPORT

NOT CONTENT WITH SPENDING ITS $200 BILLION OIL FORTUNE CONSTRUCTING THEWORLD’S TALLEST TOWER, DUBAI’S RULERS ARE RECLAIMING THE SEABED TO BUILDLUXURY VILLAS ON ISLANDS SHAPED LIKE GIANT PALM TREES. UNSURPRISINGLY, HITACHIMACHINES ARE BEING USED FOR THE TOUGH JOBS OF ROCK WORKING AND SHOREPROTECTION

ARABIAN MIGHT

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Dubai is literally booming. You can feel the speed of development of this emergingworld city. It is said that almost all of the world’s tower cranes currently being

manufactured are coming here and judging by the crowded skyline, it’s hard todisagree. The city has just been named the Middle Eastern city of the future, anacknowledgement of the vision of General Shaikh Mohammed Bin Rashid AlMaktoum, Crown Prince of Dubai, and the reality of what can be achieved when oilresources are invested wisely.

Although the Gulf State’s rapid economic growth began in the 1960s with the firstproduction of oil, the city’s wealth is no longer dependent on natural resources. Tourismhas already overtaken oil revenues as the prime source of income.

The city has long welcomed foreign investors and there are no corporate or personalincome taxes. For this reason, hundreds of thousands of foreigners have bought secondhomes in Dubai, mainly on the Jumeirah Beach coastal strip. The attractions of thiswealthy Arab state are obvious: low prices, guaranteed sun and a pro-western culturewith no expectation to conform to Arab dress codes. Five years from now, Dubai hopesto attract 15 million tourists, three times its present annual figure.

The property section from Gulf News, the region’s daily English languagenewspaper, runs to over 75 pages, so you could say that the market is rather ‘healthy’.By far the most interesting developments are the Palms: artificial islands created in theshape of palm trees. The first was on the Jumeirah Beach area; the second is currentlyunder construction in Jebel Ali. It is being actively marketed as a ‘destination like noother on earth’ and it’s hard to disagree with this bold statement.

Its central ‘trunk’ will boast a sea village of luxury hotels and apartments, with amarina complex for shopping, leisure and entertainment. Secluded residentialproperties, consisting of signature homes, garden view villas and townhouses, will line

canal coves. The outer crescent (breakwater) will have a tailor-made coastline linedwith hotels, mansions, villas and apartments. And protected by this crescent will bewater homes; 1,000 elevated properties on stilts.

Of course, it’s hard to visualize all this, when it doesn’t actually exist yet, but whatwe’re here to see is far more interesting, and that’s where the Jan De Nul Group andHitachi come in.

The Belgian company, established in 1938, is a world leader in dredging andreclamation projects. It was awarded the Palm Island Jebel Ali (Palm Island II) projectin 2002 and is scheduled to finish the works by the end of this year. The pressure is on:it is a 24 hour a day, seven days a week operation in difficult climatic conditions.Temperatures can rise to 55 degrees Celsius in summer, with 95% humidity, makingthe choice of machinery paramount.

The Jan De Nul Group was in a good position to win this prestigious contract, whichconsists of the creation of a four kilometre artificial peninsula in the form of a giantpalm tree, protected by a 200 metre wide and 17 kilometre long breakwater builtaround the island. It had already been involved in the dredging works for the creationof the largest man-made harbour in the world (Jebel Ali port entrance) and was ableto use all the suitable excavated materials from the port for the reclamation of thepalm and because of this, effectively offer the best price.

135,000,000 m3 of cap rock, sand, calcarenite and limestone are being reclaimed bythe company’s most powerful cutter suction and trailing suction hopper dredgers, andthe artificial peninsula will be protected from the actions of the sea by approximately5,000,000 m3 of rock (equivalent to 10,000,000 tonnes) in varying sizes from 0.1kg toseven tonnes.

All of this rock is being hauled overland by lorry (up to 750 truck loads a day) from

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the Emirate Ras Al Khaimah, some 200 kilometres away, to Jebel Ali port, where it is loaded on to rockbarges. And this is where the Hitachi fleet is operating.

Supplied by Belgian dealer Luyckx NV, the Jan De Nul Group is using two Zaxis 500s, two Zaxis 800s (bothwith a super long 28 metre front) three Zaxis 850s and one EX750H. All of them are using rock buckets fromBritish-based Midland Steel Trading (MST).

Our first stop is the ‘trunk’ of the island, where we meet Koen Corluy, who as Technical Superintendent, isresponsible for the maintenance and performance of all land equipment on this project and is naturally pleasedto have Hitachi excavators on site.

“We need machines that are capable of working in extreme conditions,” he says. “The temperature now isfine (25 degrees Celsius in February) but the machines have to be able to function in conditions that are morethan twice as hot as this. We don’t have to worry about the Hitachi machines

, as there are very few modifications needed to cope with these extreme temperatures. We use anadditional air filter because of the amount of sheer dust and we also alter the ratio of the crankshaft of the fanso that it gives more revolutions, to assist with the cooling process. There’s also a silencer modification madeto meet stricter noise regulations. That’s about it; apart from the above, they are completely standard machinesand more than capable of meeting our requirements.”

This is a view that is shared by Rob Van Der Lienden, Project Manager for rock works and Mr. Menten,Manager for all construction and earth moving equipment at De Nul Head Office. “We are proud of our workhere and are very happy with the performance of the Hitachi machines as well as the support of Luyckx, ourlocal dealer.”

This vital dealer back up is provided on site by mechanical engineer Wim Aernouts, who Luyckx has sent outfor a six-week stint, before moving him on to Sachalin Island in Russia. De Nul operates a 24 hours, seven daysa week fleet of three Hitachi Zaxis 800s and one Zaxis 350 at temperatures between –27° and –42° C, to dig alandfall connection for gas-pipelines.

He has worked in Dubai before though, and knows his way around. Although only 27-years-old, he already has11 years of experience of working with all kinds of construction equipment. Regular preventative maintenance isthe key to machine longevity, and with a non-stop operation (and machine downtime costing serious money) histeam and tight service schedule resembles that of a Formula One pit stop routine.

“My day starts at 6am and I have to travel (by boat, pick-up truck and on foot) around the entire complex tocheck that all our machines are running efficiently. We have four technicians working here and our operation runslike clockwork. We check all oil levels, water levels, grease all moving parts, clean the radiators with a high-pressure water spray, check the condition of the buckets and teeth, inspect the final drive, all filters and then finallyfuel up the machines”.

“We only allow ourselves 15 minutes for each machine and try to get as much feedback from the operators, whoare all local guys and are good at what they do. I cover a massive area and would be lost without my mobile phoneand also the Dr ZX diagnostic software technology, which allows me to work faster, and more efficiently. Boats arealways ready to transport me from the inner trunk to the outer crescent, where the various machines are.”

JOB REPORT

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We observe a Zaxis 800 that is currently standing on the probable site of a futureHilton hotel. It is using a special ‘cactus’ grab to move huge lumps of rock from flatbedlorries to the edge of a jetty in preparation for the rock barge that will transport it outto one of the peninsula’s crescents. In the hazy distance, we can make out theextended booms of four Zaxis machines working together on the rock formations.That’s where we are heading.

On the boat ride across to the crescent we pass a machine (not a Hitachi) that isstanding idle. “They’ve been trying to fix that one for four days,” laughs Wim as hewatches technicians going through the usual process of elimination that is faultfinding. “We don’t have any similar problems with the Hitachi excavators. They arealways working so have to be reliable. With the sea air, salt water and dust, it doesaffect the oxidation on the electric cables and batteries. Rusting of parts is also aproblem but you can’t avoid that here, so that’s where routine maintenance comes into play.”

An earlier look into Wim’s workshop had revealed an extensive stock of fuel, oil andhydraulic filters, belts, fans, water pumps, alternators, upper rollers, track plates,bearings, nuts, starter switches, hosings and hydraulic cylinders. It’s all there if he needsit and anything he doesn’t have can be with him in three days from Belgium.

His role in keeping all Hitachi excavators running efficiently cannot beunderestimated. All Zaxis machines clocked over 6,000 working hours in justeleven months, so a total of more than 48,000 working hours in the mosttough, severe conditions, while Luyckx engineers try to keep anaverage machine availability of 96 % as a goal.

On arrival at the peninsula’s crescent, theefficient rock works operation

continues at a good pace. A Zaxis 800 with a 28-metre super long front is gradingthe slope. The seabed in this area is some 12-metres below the surface and theentire dipper boom is almost disappearing underwater. Obviously, the operatorcannot ‘see’ underwater, so he is using a state-of-the-art computer system that usesa DGPS positioning system to help him move rocks, and grade the peninsula’s sidesto perfection.

Just a few hundred metres away there is a hive of Zaxis activity. A Zaxis 850 isbobbing up and down on a heavily loaded. rock barge, moored close to the artificiallandmass. The Zaxis 850 is emptying the barge so quickly that it has to changeposition to restabilise the barge's buoyancy.

A land-based Zaxis 500 scoops up the variety of rock deposited and uses itsbucket to shape and grade the crescent. Working together, these machines can addup to 50 metres of new shore protection ‘land’ each day.

In the distance, some 100 metres offshore, another heavily loaded rock barge ismoored. This one is full to the brim with huge rocks of up to eight tonnes. AnotherHitachi excavator, a Zaxis 850 with a special grapple attachment, is effortlesslylifting, hauling and dropping these huge lumps into the water, forming the futurefoundations of what will one day be somebody’s home.

As the boat comes to pick us up for the return journey to ‘land’, we are sorry toleave but are at least glad to have captured our story on film. Life moves fast inDubai and we know that should we return, even in a few month’s time, this stretchof reclaimed land will be virtually unrecognisable and almost certainly underconcrete.

The Zaxis excavators will have moved on, but not too far away because planshave already been announced for a third Palm Island complex, as well as a‘waterworld’ resort that will dwarf what we are seeing here today. The Jan De NulGroup will surely be in the running as experienced contractor, with the support oflocal dealer Luyckx, to help transform the Crown Prince’s substantial vision for thisgreat melting pot, into reality.

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MOVING HEAVEN AND EARTHHM PLANT IS ON THE CREST OF A WAVE. THE IMPORTER AND DISTRIBUTOR OF HITACHI CONSTRUCTION MACHINERY INTHE UK AND IRELAND IS REAPING THE REWARD OF AGGRESSIVE SALES AND MARKETING STRATEGIES IN THE FACE OFSTIFF COMPETITION. RECORD SALES IN 2004 HAVE COME OFF THE BACK OF A MASSIVE INVESTMENT IN A NEWHEADQUARTERS AND THE RECONSTRUCTION OF ITS DEPOT NETWORK. HM PLANT HAS, QUITE LITERALLY, MOVED HEAVENAND EARTH TO MEET THE NEEDS OF ITS CUSTOMERS.

“HM Plant is widely regarded as the UK and Ireland’s leading construction equipmentsales dealer, having achieved market leading status for 21 of the past 23 years,”states the company’s proud Chairman John Jones.

The facts speak for themselves. HM Plant has taken the lead with its focus onsales, dynamic promotional activities and commitment to product support. The crucialsector in the UK and Ireland is mid-range crawler excavators and this is where HMPlant has excelled. The Hitachi Zaxis range has enabled HM Plant to increase volumesand maintain its competitive advantage. In fact, one in five new excavators sold in itshome market are Hitachi excavators.

So what has made the story of HM Plant a best seller? There’s no doubt that JohnJones has the answer, but first it is necessary to take a trip back in time to study thehistory of the company’s partnership with Hitachi.

HM Plant was appointed as a sub-dealer 26 years ago, before being recognised asthe official Hitachi importer for the UK and Ireland in 1980. Fifty new Hitachiexcavators were sold in the first year with a turnover of £2million. The Hitachi brandstood proudly as market leader for the first time in 1983, a notable achievement in itself.

Moving on to the next decade and HM Plant engineered a series of management

DEALER

buy-outs (MBOs) that laid the foundations on which the company is built today. Thefirst of these came with the backing of Close Brothers and the Midland Bank in1993, while Alchemy Partners and the Bank of Scotland backed the second six yearslater. During this period, HM Plant’s turnover more than trebled from £23million in1992 to £72million in 2000.

The turn of the century saw a third MBO backed by Uberior and the Bank ofScotland. Then, as the dust settled on Hitachi’s divorce from Fiat, HM Plant’scommitment and continued growth was formally recognised in financial terms. Itwas Hitachi’s turn to make a strategic investment in HM Plant in 2003 with bankfacilities provided by UFJ Netherlands NV. The turnover increasing significantly overthe four year period, by 40% to £100million, as a result of selling 2,500 new andused excavators in 2004.

Jones has guided HM Plant through these landmarks and was obviouslydelighted when Hitachi acquired a 30 per cent shareholding in the business. “Inmany ways, this was the final link in the chain,” he explains. “It gave the board ofdirectors the opportunity to secure the long-term future of the company andstrengthen its position within the market. At the time we knew that this partnershipwould be reflected by a strong investment in our sales and marketing strategies.

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DEMAND IS HIGH, SO THE TURNAROUND TIME ISCRITICAL IN ENSURING THAT EVERY MACHINE ISPREPARED TO ORDER AND THEN DESPATCHEDUSING HM PLANT’S EFFICIENT TRANSPORTSYSTEM.

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“The biggest change over the past 12 months has been the restructuring of thecompany’s depot network and a radical change in our logistical strategy. However,we would like to feel that it has been a seamless transition and hardly noticeableat all to HM Plant’s customer base.”

The jewel in the crown is a new state-of-the-art facility at Hebburn on theoutskirts of Newcastle-upon-Tyne in the North East of England. HM Plant’s newheadquarters emerged from a greenfield site and developed into a fully operationalbuilding in less than seven months. Impressive, by any standards, but even moreimpressive when you consider the background to the move.

Only a year previously, HM Plant was based at Bridgwater in Somerset (south-west England) with nine other regional depots playing a key role in the day-to-dayrunning of the business. Hitachi Construction Machinery equipment, imported fromJapan and Europe, was brought into the south-west before transportation as farnorth as Scotland and to the south east of England. Major parts, service andrefurbishment work was also carried out at these sites.

The location of Hitachi’s new European manufacturing plant near Amsterdam lentitself to a North Sea freight route between Great Britain and the Continent. Thereliability and technology inherent in the new Hitachi Zaxis range also eliminatedthe need for a network of major regional repair depots.

“The search for a shorter and more cost effective transportation route wasconcentrated on the east coast of England,” explains Jones. The North East was theobvious choice in an effort to bring new Zaxis excavators into the UK with aminimum of delay. It would also make sense for our new central distribution pointto be near the port of entry.

“The positive feedback on the Zaxis range from our customers confirmed whatHitachi had promised. The quality and reliability of Hitachi excavators is second tonone. Significant advances in technology also enabled us to service and repair

customers’ machines on site in the unlikely event of a breakdown. This reduced therequirement of transporting machines to regional depots, which could now berelocated to smaller industrial units for sales, parts and field service operations.”

The research team settled on the Monkton Business Park in Hebburn as itsnumber one choice because of a close proximity to the Port of Tyne and anestablished sea route to the Netherlands. In addition, the thriving city ofNewcastle-upon-Tyne offered a busy international airport, main line train stationand easy access to the motorway network for travel and transportation. With plansfor a multi-million pound development already in place, the Hebburn site willprovide HM Plant with the ideal base from which to service the needs of theconstruction industry in the UK and Ireland for many years to come.

HM Plant officially opened its £5million head office in November to muchacclaim. Fifty new staff were appointed on the seven-acre site, which houses some60,000 square feet of storage, technical and administrative facilities.

“The primary function of the purpose-built complex is to prepare the new HitachiZaxis excavators for direct delivery to customers,” confirms Jones. “Demand ishigh, so the turnaround time is critical in ensuring that every machine is preparedto order and then despatched using HM Plant’s efficient transport system.

“A second production line has also been set-up to refurbish used machines, andin doing so, extend the life of Hitachi’s already reliable products. This process iscarried out using the latest repair, painting and preparation techniques by factorytrained technicians.

“Ultimately, HM Plant has the capacity to double its annual volume sales of newand used machines to 5,000 per annum. This figure takes into account new productlines becoming available from Hitachi.”

The future looks bright for HM Plant’s continuing domination of the UK andIreland excavator market. The revised regional depot network has allowed the

DEALER

A TEAM OF OVER 50 HM PLANT STAFF ARE WORKINGTO DELIVER ULTIMATE CUSTOMER SATISFACTION

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company to enhance the sales and product support services that its customerbase enjoys.

An additional site at Hoddesdon (north of London) and new location depots atBristol, Northampton and Bellshill (Glasgow) have increased the strategicallyplaced depot line-up to ten satellite units. These depots hold stock ofconsumable parts and other components, which can be restocked on a 24-hourdelivery cycle, via HM Plant’s base at Hebburn or Hitachi’s parts distributioncentre in the Netherlands.

An extended service and warranty package, SOLAS, has also been wellreceived by the market. It provides Hitachi owners with peace of mind with thesupport of an extensive network of factory-trained service engineers, fullyequipped product support vehicles and genuine approved parts.

The impact of the reorganisation of HM Plant’s logistical strategy is alreadyevident, according to John Jones. “The changes that have taken place in thepast 12 months were essential to the future development of HitachiConstruction Machinery in the UK. We had to move with the times and seek toenhance the efficiency and effectiveness of our operation. In doing so, we havehad to consider the needs of our customers and our ability to fulfil them coupledwith the demands of the market.”

HM Plant’s success in meeting its sales targets has been mirrored by thestrength of its marketing campaign. This has been supported by links with keystrategic partners such as Texaco (branded lubricants) and Honda (brandpromotion).

The Honda agreement in particular shows that HM Plant means business. Athree-year agreement (2004-06) to become the title sponsor of Honda Racing isalready increasing awareness of HM Plant and Hitachi Construction Machinery.As well as significant brand exposure to more than 50 million television viewers

and one million live spectators at Superbike, powerboat and Motocross events,HM Plant is also using the events to entertain its customer base on a nationalbasis.

The prestigious nature of the sponsorship package ensures that HM Plant isviewed in a positive light with the world’s number one motorsport brand. Inaddition, it opens up new avenues for the company such as its inclusion withinexciting new projects on PlayStation 2 and Scalextric. Other hospitality eventsinclude premier league football, golf, yachting and a high profile presence at aforthcoming global tall ships event on Tyneside.

The British construction industry receives further exposure to the HM Plantbrand via its centrally controlled marketing activities. Aggressive advertising,proactive PR and a dynamic new media campaign form the main thrust of HMPlant’s communication strategy to the industry at large and a wider audience.

“The formula is a simple one,” concludes Jones. “HM Plant has investedheavily in promoting Hitachi Construction Machinery products and a range ofrelated services through 100% focussed sales. This has paid off for us in termsof increasing brand awareness and market share. At the same time we haveintroduced after-sales initiatives and developed customer relationshipmanagement techniques to secure a meaningful and profitable future for allconcerned.”

A visit to HM Plant’s new headquarters to meet John Jones and his teamreveals the core characteristics of the British construction industry and Hitachi’smarket leading position within it. The vision shared by HM Plant and Hitachi todeliver ultimate customer satisfaction will ensure that the British distributor’scorporate slogan ”moving Heaven and Earth” continues to thrive.

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A TOUR OF HITACHI’S FACTORY IN AMSTERDAM IS AN EYE-OPENING EXPERIENCE. ITREVEALS A FASCINATING SEQUENCE OF STAGES THAT CULMINATE IN THE PRODUCTION OFA NEW ZAXIS EXCAVATOR. THE ORDERLY APPROACH AND IMMACULATE ORGANISATIONCOULD ONLY COME FROM A STRONG AND VISIONARY MANAGEMENT TEAM. THE MAN INTHE HOT SEAT IS HITACHI’S PRODUCTION MANAGER TONNY ENGELS

After meeting Tonny Engels for the first time it is easy to understand why he was elected to oversee the manufacturing processat Hitachi Construction Machinery Europe’s purpose-built headquarters. Having spent over 19 years of his career at the

company’s mini-excavator production plant, Tonny’s vast experience included helping to set up the production cycle at theOosterhout factory.

Tonny accepted his fresh challenge and started work at the new factory on 1 September 2002 when the building was no morethan a shell. “We didn’t experience many problems in those days,” he explained, “thanks to the support of my Japanese colleaguesand the use of parts designed at our headquarters in Japan.”

“Initially, we concentrated on installing machines such as those for welding frame components. Also, the method we used formachining booms was similar to existing production techniques, so it was relatively easy to introduce this onto the production line.The technical support we enjoyed from Hitachi in Japan was invaluable.”

By mid-November 2002, Tonny and his team had started training new staff. On 17 January 2003, the first excavator rolled offthe production line at Hitachi Construction Machinery Europe’s new headquarters, much to the delight of its 60 staff.

Within four months the expanding workforce showed remarkable progress by producing two to three units per day. However,the manufacturing process was not without teething problems.

“Overall, the first year went well,” Tonny recalled, “although we did have some logistics issues with local suppliers. The ‘justin time’ principle is still not of the required standard, but we are getting closer and closer all the time.”

“This was natural if you consider that we had some difficulties with the drawings and technical specifications for certaincomponents. Our personnel were hand-picked with a wealth of experience from other industries, but some of them had never evenseen an excavator before joining Hitachi!”

This is where Hitachi’s specialist training programme came in. The company’s internal education scheme enabled new staff toquickly build their skills to the level of expertise they are currently demonstrating. In addition, key personnel were enrolled onexternal courses to focus on quality, safety and other areas of the manufacturing process.

At the same time, Hitachi introduced its two painting lines: an automatic system for individual components and another forcomplete machines. This was, once again, a new concept for the team employed in managing the process. They have since

PEOPLE POWER

ABOVE FROM LEFT TORIGHT: EUGENECIMINERA, HANSBOONTJES ANDHITACHI’S PRODUCTIONMANAGER TONNYENGELS

FACTORY NEWS

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“HITACHI INTRODUCED ITS TWOPAINTING LINES: AN AUTOMATICSYSTEM FOR INDIVIDUALCOMPONENTS AND ANOTHER FORCOMPLETE MACHINES.”

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implemented a smooth flow of parts along the line.“We are now outputting 11 complete units per day,” said Tonny with some pride.

“However we are not resting on our laurels. The process will continue to be fine-tuned over the next three to four years until we reach an ultimate target of 16 unitsper day. At the moment we are on course to achieve this. In fact, we are operatingat a satisfactory level around 6% above the target set by management.”

The shift system and production lines have evolved during the past two years.Over 200 employees are split into two shifts (three for machining) operating toachieve the required production levels and improve efficiency. The assembly lineonly splits for fitting undercarriages to the crawler and wheeled excavators. Thisis because the docking of the upper structure on wheeled-machines takes two-and-a-half times longer.

When the process has been completed, the two types of machine rejoin thesame production line. Once an excavator has been completed, a team, that hasbeen trained to stringent guidelines (set in Japan), tests it rigorously.

.Indeed, such is the emphasis on quality control that the testers are flown toHitachi’s global headquarters when new models or techniques are introduced.As the complexity of the system is revealed Tonny’s enthusiasm and expertise

are obvious. He has led from the front and used his experience to good effect. Thesuccessful implementation and control of a new construction machinery factoryis a tribute to his and his team’s organisational prowess.

“The factory personnel have been sub-divided into two areas and four groups,with a foreman in charge of each group,” Tonny explained. “The foremen, in turn,have group leaders who have specific responsibilities to control each team ofpeople. We operate a cascade system, which means that information descendsdown the chain of command, a bit like a waterfall. The only difference is that we likeinformation to come flowing back up through the hierarchy too!

“Each group is dedicated to specific activities, but there is always room forimprovement. The ultimate goal is to have teams of multi-skilled personnel, so we arefocussing on moving people around within our structure so that they can shareinformation and help our systems to continually improve.”

“This is of course easier said than done. It’s a big challenge for someone to moveon to a new role from a job that they know and feel secure with. This requires a lot

of persuasion from the management team but it’s worth it as we seek to find thebest people who can help us to shape the future development of the factory. Wepromote from within so those capable of accepting greater responsibility areselected for progression within our management structure.”

The importance of this issue is not lost on Tonny. The variety of tasks and rolesare so wide ranging that he must work hard with his team to achieve the correctbalance for each shift. This is a role carried out by his assistant managers whooccupy a first storey office in the middle of the factory. The location is important,because it gives them an overview of all the operations.

Inevitably, new staff will make mistakes but to eliviate the problem Hitachiimplemented a safety environment group (in October 2004). This is applicable to theoperational part of the factory, which has a focus of being to achieve ISO18000later this year. The system works well, with team leaders taking responsibility forreporting mistakes to upper management. Regular monthly reports then enableappropriate action to be taken in each case.

The monitoring and control of quality issues is approached in much the sameway. The responsibility lies with the team leaders who provide management withthe information it requires to ensure that Hitachi’s standards remain second to none.

Remarkably, Hitachi is able to produce up to 1,000 variations of the 13 mid-rangeexcavators currently outputted at the Amsterdam plant. This reveals the optionalextras that are fitted to the Zaxis 110-350 crawler range and Zaxis 130-210wheeled excavators, contrasting with the mini-excavators at the Oosterhout factorywhere there are 64 distinct and possible excavator specifications. The most popularmachines produced in Amsterdam are the Zaxis 210, 130 and 240 crawlerexcavators.

The multitude of orders also presents factory management with an additionalheadache. They cure this by moving staff on each shift to meet demand, anothergood reason to focus on multi-tasking. Flexibility among employees is rewardedwith overtime to satisfy the requirements of the dealers and the end users in each country.

So how does Tonny see the future?“I don’t think that we will ever build all the parts for the machines here in The

FACTORY NEWS

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Netherlands,” he revealed. “Assembling the upper structure of an excavator is acomplicated procedure which has been perfected in Japan where they are alsoable to maintain a high level of quality on hydraulic parts.

“On a global perspective it makes sense to make one component on anexclusive basis in one location. It reduces the risk and smoothes the logisticalprocess. This also represents Hitachi’s global perspective on the manufacturingprocess.”

“We have already produced our 5,000th machine, a Zaxis 240 on 23 December2004, and as I have already explained, our total volumes are increasing. This isalso thanks to the delivery of complete excavators from Japan and the help of theApplications Centre (AC) in Oosterhout for assembling the arm and boom on ourbigger machines. In fact, the AC factory is an integral part of our approach as itchurns out our three additional units per day. This will hopefully enable us toexceed our production target of 3,641 units in 2005.”

Tonny’s passion for his job is obvious and this begs the question of what heenjoys most about his role.

“Dealing with people,” he said without hesitation. “It’s the personnel sidethat I have most interest in. I really like to get involved in specific situations. IfI can help to develop a happy workforce then we will collectively meet ourproduction targets. That’s why this remains one of my primary functions.”

“Ultimately, I would like to see everyone working in a happy environment. Thismay be a dream but it’s also a vision that we share on a daily basis.”

“Furthermore, it is my belief that we should have a strong and harmonioushorizontal and vertical structure between all sections of the manufacturing plant.We should not aim to build walls or obstacles between groups of people. To dothis we try to involve all people and become a family. Without our colleagues, wehave and are nothing.”

That perfectly summed up the positive working environment Hitachi hascreated in its Amsterdam factory. As Tonny’s vision continues one can onlyimagine that the future’s bright for Hitachi and its dedicated workforce.

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MAKING THE BEST AFFORDABLEFOR THOSE WHO DON’T WANT TO SETTLE FOR SECOND BEST, THERE IS A WAY TO ACQUIRE THE RIGHT EQUIPMENT TOGIVE YOUR BUSINESS THE COMPETITIVE EDGE IT NEEDS. IT’S CALLED ZAXIS FINANCE AND IT’S AVAILABLE FOR YOU

There can be no sentiment when choosing replacement or new constructionequipment; the industry is far too competitive for companies to labour under

any kind of disadvantage. Inevitably, many turn to Hitachi as a fail-safe provider.Even the most economy-minded chairmen and financial directors realise that, inthe long run, cheaper equipment can often prove to be the most expensive.

ZAXIS FINANCEIt makes sense for a company, like Hitachi, that produces the mosttechnologically advanced and robust excavators, wheeled loaders, dump trucksand crawler cranes to make them as easy as possible to acquire. A highlycompetitive finance programme, like Zaxis Finance, obviously benefits Hitachi bymaking its products accessible and affordable, for customers ranging from smallbusinesses to multi-nationals. For the customer the advantage of being able toobtain reliable, innovative and advanced equipment can mean the differencebetween success and failure.

The Zaxis Finance programme, which lends its name to the state-of-the-artZaxis range of excavators, makes it simple to acquire the right equipment, andany subsequent maintenance and/or insurance, by customising a financialsolution to suit individual companies and circumstances. The reliability andinternational coverage of the financial programme are guaranteed.

Zaxis Finance is a joint operation of Hitachi and De Lage Landen International(DLL). DLL is an asset finance specialist and has offices and joint ventures inmore than 20 countries, and is a wholly owned subsidiary of the Dutch RabobankGroup, regarded by the finance world as one of the world’s safest banks.

FINANCING BENEFITSDLL’s European Programme Manager of Zaxis Finance, Michiel van Ramesdonk,elaborates on the Zaxis Finance programme: “There are more benefits to be gainedfrom financing your Hitachi equipment than immediately come to mind. One of themain benefits is that your capital is kept free for other business expenses ratherthan tying it up in your fixed assets. You can rely on fixed payments so they becomea lot more transparent and depending on the finance product of your choice, taxbenefits, off-balance solutions and various end of lease options are available.”

Zaxis Finance provides flexible finance packages in various countries acrossEurope. In general, the lease options can be divided in two main categories; Rentaland Lease Purchase. The whole range of Hitachi’s equipment can be financed viaZaxis Finance and both packages can include maintenance and/or insurance on yourHitachi Equipment.

ZAXIS FINANCE

MICHIEL VAN RAMESDONK: “LAST JANUARY WE CELEBRATED OUR FIRSTANNIVERSARY. OUR FIRST YEAR HAS BEEN A GOOD ONE. WE HAVE BECOMEOPERATIONAL IN BENELUX, GERMANY, FRANCE, UK, ITALY AND SPAIN.”

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RENTALIf customers prefer what's called an 'off-balance' solution (equipment notcapitalised on the company's balance sheet) the obvious answer is to take up theRental option. This has 'double flexibility' because at the conclusion of the rentalterm the customer has two choices: (1) renew the contract and replace existingequipment with the latest model(s), and (2) extend the current agreement, or buythe rented machinery that is in use*. In either case, VAT will be spread over allpayments.

LEASE PURCHASEAs you might suppose, a Lease Purchase option is the 'on-balance' solution(equipment that is capitalised on a company’s balance sheet). The big advantage ofa leasing package is that at the end of the agreement full ownership of theequipment is transferred to the customer's company*.

Zaxis Finance will also help clients decide which of the finance packages is moreappropriate to the company's individual needs and projects. Simply determine yourspecific equipment requirements and decide on the most appropriate financialpackage, either lease or rental. Your dealership will provide professional andpersonal advice and any other relevant information about Zaxis Finance.

ONE YEARMichiel van Ramesdonk: “Last January we celebrated our first anniversary. Ourfirst year has been a good one. We have become operational in Benelux,Germany, France, UK, Italy and Spain. Our service and expansion continuesrapidly and all the Nordic countries; Norway, Sweden, Finland and Denmark willbe on-stream in the course of 2005. Our goal is to be everywhere where Hitachiis active.”

This does not necessarily mean that Zaxis Finance will be wholly available inevery country that sells Hitachi machinery, but it does mean that DLL willendeavour to make facilities accessible. There is a possibility that this mightmean using agents in small market sectors. Currently though, the focus is onlarger countries.

BEST OF BOTH WORLDSMichiel van Ramesdonk continued: “We are not the manufacturer and we are nota bank. We’re a service provider with a foot in each camp. There are manybusinesses that don’t want to deal with banks, in the same way that they don’twant to deal with a manufacturer when it comes to finance. They take theattitude that it is no one’s business but my own how I finance my equipment.That’s the beauty of Zaxis Finance, we combine the best of both worlds!”

That is as it should be, of course. What customers don’t want is a system thatis run only for the benefit of the manufacturer. There can sometimes be a feelingthat exploitation is not far away. It makes good sense for a global organisationsuch as DLL to take care of that aspect of finance. A professional customer wantsto deal with professionals.

“The customers appreciate our understanding of the market that they are in,which in general, the banks don’t,” said van Ramesdonk “At the same time theyappreciate that we are financial experts. It is the combination that works welland will continue to work well in the future – of this I have no doubt!”

* options may differ per country

For more information about Zaxis Finance please contact your localdealership or your Zaxis Finance representative:

Zaxis Finance in the Netherlands: +31 (0)40 233 9190Zaxis Finance in the UK: +44 (0) 1923 810000 Zaxis Finance in Belgium: + 32 (2) 718 04 55Zaxis Finance in Spain: +34 91383 59 01Zaxis Finance in Italy: +39 02 63694 266Zaxis Finance in Germany: +49 (0)211 5268 184

Zaxis Finance in France: +33 (0)145192102Zaxis Finance in Sweden + 46 (0) 878 10 678 Zaxis Finance in Norway + 47 (0) 930 20 201Zaxis Finance in Denmark + 45 (0) 447 00 700 Zaxis Finance in Finland + 35 (0) 840 50 22195Go to the finance section on http://www.hcme.com

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THERE ARE MANY REASONS WHY HITACHI CONSTRUCTION EQUIPMENT ISTECHNOLOGICALLY ADVANCED AND A DEFINITIVE PROJECT SOLUTION. ESSENTIALLY,THESE PRODUCTS EMANATE FROM A SELF-CONTAINED COMPANY WITH DEDICATEDRESOURCES AND FINANCIAL INDEPENDENCE. HITACHI’S WORLD IS FAR MORE EXPANSIVETHAN MOST PEOPLE THINK. GROUND CONTROL LOOKS AT WHAT MAKES A LARGECOMPANY SUCCESSFUL

KNOW HITACHIHITACHI ORGANISATION

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The readers of this publication are almost certainly users of a diverse range of Hitachiconstruction equipment, which combines countless working hours of efficient reliability

with unrivalled after-market support. Peace of mind is a priceless commodity that comesfree with all Hitachi products and while this might seem like marketing hyperbole it is,nevertheless, true. Background knowledge of the manufacturer’s origins show that there areliterally millions of reasons why the quality and efficiency of Hitachi products are taken forgranted. The seeds for this were sown more than 95 years ago.

The Hitachi name was first established in 1910 as an electrical repair shop servicing acopper mining company.

Almost a century later that small pioneering enterprise has grown to become Hitachi Ltd.,the largest electronics and electrical equipment company in the world (source: GlobalFortune 500) comprising 986 separate companies, employing 347,424 people, and producingover 20,000 different products. True to its humble roots the company manufactures a fullrange of consumer electrical goods but has industrially expanded to include high technologypower generators, innovative transport systems, cutting-edge IT solutions, and market-leading heavy construction equipment.

In 1970, the Hitachi Construction Machinery Group (HCM) was formed after Hitachi Ltd.decided to ‘spin off’ (or annex) its construction machinery division.

The subsequent and rapid expansion of HCM brought the formation, in 1982, of HitachiEurope Ltd (HEL) which is a wholly-owned subsidiary of Hitachi Ltd. (Japan) and one of fourregional headquarters for Hitachi’s worldwide operations. With headquarters atMaidenhead in England, HEL now has its own design centre, three R&D centres and elevenbusiness units. So far, Hitachi Europe Ltd has achieved a sales net total of more than£561million.

Responsible for European sales and the marketing of products from eleven businesssegments, HEL is single-minded in believing that its customers and clients should be at thehub of everything it does. To this end it strives to develop long-term partnerships withdealers and distributors. Mikio Yotsu, the Managing Director of Hitachi Europe Ltd, summedup the company’s philosophy when he explained: “Hitachi is right at the forefront of thedigital revolution. As a global leader in IT, power and industrial systems and electronicdevices, we help transform lives by using technology to make innovative, yet affordableproducts.”

The advanced electronic systems that are essential aspects of Hitachi’s constructionindustry equipment are something most operators and companies take for granted. But,considering that Hitachi’s world-leading expertise is an important part of the digitalrevolution, its excellence is not so surprising.

The company’s High Performance Computer Group (HPCG) produces some extremelyadvanced high-technology examples such as the SR11000 Series of Super TechnicalServers. These super computers were developed to serve the increasing demand for suchtasks as weather forecasting, atomic energy applications, aeronautics and astronautics,molecular design, and structural analysis applications and much more. The servers combineTFLOPS-class computing power with a high performance inter-node network. Peakperformance is at 27.8TFLOPS, which put simply, means that it is world class. More recently,Hitachi has also produced the miniscule Mu-Chip, the world’s smallest Radio FrequencyIdentification Chip (RFID). This miniature marvel measures only 0.3mm squared and is just60 microns thick!

Still on electronics, the Europe-based Hitachi Data System (HDS) has just made availablea product called TagmaStore, which is one of the largest data storage devices in the world.When combined with additional Hitachi technology, the amount of data stored can be up to10 times greater because of its special perpendicular format! From this point on, thepotential for comprehensive database storage is enormous.

Closer to home, and something we can all understand, is Hitachi’s leadership in consumerdigital electronics. The Digital Media Group (DMG) sets performance standards in acontinuously evolving and burgeoning field and has been responsible for a number ofindustry innovations. For example, it produced the world’s first DVD camcorder andmanufactures the award-winning Hitachi plasma televisions. Other industry-leadingconsumer products include LCD and home cinema projectors, audio systems, colour TVs,DVD players and recorders, vacuum cleaners, air-conditioning systems and, for its homemarket, at least, almost any type of domestic electronic product you can think of. Apart frommaking good commercial sense, and as a medium for raising brand awareness, Hitachi’sdigital consumer R&D can lead it towards much more globally important research.

For over 75 years, one of the more high profile and diverse fields Hitachi has operatedin is the rail industry. When it was called the Power and Industrial Systems Group (PISG)the company designed the world famous Shinkansen Bullet Train and sealed itsreputation as the supplier of world class rail solutions by being selected as the preferredsupplier of 30 new ‘A’ trains for domestic services on the Channel Tunnel Rail Link (CTRL)and local lines throughout the English county of Kent. On the CTRL, these trains arecapable of speeds up to 140 mph and will reduce Channel crossing times considerably.Other progressive developments from Hitachi in the rail industry include advancedticketing and signalling solutions and innovative monorail technology. However, as from1 April 2005, PISG split into three separate business groups: PISG, the Rail Group (RG),and the Industrial Components and Equipment group (ICEG). The result is three less wieldy businesses that have become more efficient and more appropriatelydedicated to their specialised industries.

Although it would require ten times as much space as is available in this issue, theabove should give some idea of the vast compass of Hitachi. This then is the backgroundbehind the highly acclaimed Zaxis range of excavators; the world’s first hybrid wheelloader; the first container automatic unloader; the super-high lift Zaxis 1400K demolisher;and the invaluable antipersonnel mine sweepers, currently being used in Vietnam to clear antipersonnel mines that have been dubbed ‘the Devil’s weapon’.

Perhaps the key to Hitachi realising its consumer and client-friendly philosophy is theinvestment it makes in research and development (R&D). Globally, Hitachi Ltd. spendsover US$388 billion (as per fiscal year ending 31 March 2005) annually and employs aworldwide team of over 5,000 researchers.

It’s sobering to think that Hitachi Ltd. probably knows what we will require for thefuture, even before we know it ourselves! What we certainly know is that wherever wesee a product with the Hitachi name on it, it is a stable, reliable and long-lasting solution.

Hitachi consists of 986 separate companies.

Hitachi employs almost 350,000 people.

Hitachi produces over 20,000 products.

Hitachi is the largest electronics and electrical equipmentcompany in the world (Source: GlobalFortune 500).

The Hitachi Bullet Train running between Tokyo and Osakahad an average delay of less than one minute over thelast 40 years.

Hitachi’s ‘eco-products’ generate 46% of global sales.

Hitachi is the world’s market leader in large hydraulicexcavators and its largest model weighs 780 tonnes.

Hitachi’s Mu-Chip is only 0.3mm2 and 60 microns thick,making it the world’s smallest RFID chip.

In 2005 Hitachi launched the 500GB Deskstar 7K500which is the world’s highest capacity 3.5 inch SATA harddrive.

The Hitachi International School Teachers ExchangeProgramme was founded in 1987, to promote culturalunderstanding among North America, European andJapanese school communities.

HITACHI FACTS

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DEALER LISTINGAUSTRIABaumaschinen Handel GmbH1140 WIENT: +43 15772288F: +43 1577228813

BELGIUMElsen-Traktor NV3130 BEGIJNENDIJK (BETEKOM)T: +32 16566544F: +32 16566512

Firma Luyckx NV S.A.2960 BRECHTT: +32 33139551F: +32 3315691

Demimpex-VRP S.A1130 BRUXELLEST: +32 27249067F: +32 27249060

BULGARIAZ&M Private Co.1000 SofiaT: +359 29865855F: +359 29865916

DENMARKH.P. Entreprenørmaskiner A/SDK-4632 BJÆVERSKOVT: +45 56871010F: +45 56871214

ESTONIALaadur OÜEE-11415 TALLINNT: +372 6053600F: +372 6053601

FINLANDRotator Oy33700 TAMPERET: +358 32874111F: +358 32653760

FRANCELOCASUD S.A.FR-81000 ALBIT: +33 563476969F: +33 563476414

ALMATFR-66700 ARGELES SUR MERT: +33 468811213F: +33 468815666

B2M TPFR-06510 CARROST: +33 493082000F: +33 493087462

COBEMATFR-35513 CESSON-SEVIGNÉ CÉDEXT: +33 299834444F: +33 299834344

MECA-SOUDEFR-45220 CHÂTEAU-RENARDT: +33 238956721F: +33 238956709

RICHARD Manutention S.A.FR-52003 CHAUMONTT: +33 325321980F: +33 325325358

Prodimat SASFR-21800 CRIMOLOIST: +33 380320480F: +33 380329710

ROUEN MATERIEL T.PFR-76380 DIEPPEDALLE-CROISSETT: +33 232830083F: +33 32831383

TERAMATFR-69740 GENAST: +33 472794470F: +33 472794479

Hitachi Construction Machinery (Europe) N.V. France OfficeFR-92441 ISSY-LES-MOULINEAUX CEDEXT: +33 158042572F: +33 158042648

Maintenance du CentreFR-28600 LUISANTT: +33 237350555F: +33 237309723

BoudesFR-12100 MILLIAUT: +33 565600695F: +33 565590600

Atlantique Service MaterielFR-79000 NIORTT: +33 549095915F: +33 549092985

Burckel Matériel de Travaux Publics S.A.FR-67330 OBERMODERNT: +33 388908063F: +33 388908605

BTP ServiceFR-64300 ORTHEZT: +33 559670363F: +33 559672757

SUD ESPACE TPFR-81800 RABASTENST: +33 563402640F: +33 563402644

PayenFR-77540 ROZAY EN BRIET: +33 164427474F: +33 164077789

SMTLFR-19330 SAINT GERMAIN LES VERGNEST: +33 555293200F: +33 555294222

PROWIMATFR-13310 SAINT MARTIN DE CRAUXT: +33 490478190F: +33 490478192

FLANDRES EQUIPEMENTFR-62223 ST LAURENT BLANGYT: +33 321599081F: +33 321730203

SOREMATFR-51430 TINQUEUX REIMST: +33 326081206F: +33 326087140

GERMANYKiesel GmbH88255 BAIENFURT/RAVENSBURGT: +49 75150040F: +49 751500460

Kohrmann Baumaschinen GmbH77815 BÜHLT: +49 722398610F: +49 7223944949

HSB Handels- und Service für Baumaschinen GmbH66806 ENSDORFT: +49 683195670F: +49 6831956730

Hitachi Construction Machinery (Europe) N.V. German Office60528 FRANKFURT AM MAINT: +49 6967733147F: +49 6967733313

Bauko Baumaschinen Handel GmbH15517 FÜRSTENWALDET: +49 336135960F: +49 3361359666

BNG Baumaschinen & Nutzfahrzeug GmbH27442 GNARRENBURGT: +49 4761923855F: +49 4761923854

Atlas Hannover Baumaschinen GmbH & Co. KG30880 LAATZEN/RETHENT: +49 510270040F: +49 5102700436

Lausnitzer Baugeräte GmbH07806 LAUSNITZT: +49 364812870F: +49 3648128716

MVM Baumaschinen Vertriebs GmbH56566 NEUWIEDT: +49 263187080F: +49 2631870839

BAUSETRA Potsdamer Baumaschinen-und Nutzfahrzeug-Service GmbH14478 POTSDAMT: +49 33188780F: +49 3318878155

VIS Bautechnik GmbH09488 SCHÖNFELDT: +49 373356600F: +49 3733566099

BAUMA-RENT GmbH18442 STRALSUND LANGENDORFT: +49 383148270F: +49 3831482727

BAW Baumaschinen Vertrieb Warbung GmbH34414 WARBURGT: +49 564176300F: +49 564163090

Tecklenborg GmbH59368 WERNET: +49 238979810F: +49 2389798194

Bautec Bau- und Landmaschinen Vertrieb und Service GmbH & Co. KG39261 ZERBSTT: +49 392362709F: +49 392362700

GREECEAtlas Hellas S.A.GR-104 47 ATHINAT: +30 2103469696F: +30 2103474428

Ergotrak S.A.GR-145 64 KIFISSIAT: +30 2106293400F: +30 2106201845

ICELANDÍshlutirIS-104 REYKJAVÍKT: +354 5752400F: +354 5752401

ISRAELN. Feldman & Son Ltd.26111 HAIFA BAYT: +972 48471229F: +972 48411117

ITALYSCAI SpA06080 OSPEDALICCHIO DI BASTIA UMBRA PGT: +39 075801501F: +39 0758010142

KAZAKHSTANTurkuaz Machinery480016 ALMATYT: +7 3272731995F: +7 3272731568

LATVIALaadur Baltic, SIALV-1002 RIGA-02T: +371 7500176F: +371 7500177

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DEAL

ERLIS

TINGLITHUANIA

Laadur Baltija, UABLT-2038 VILNIUST: +370 52159672F: +370 52159674

NETHERLANDSEurosupply Hoogwerksystemen B.V.4782 PP MOERDIJKT: +31 168329331F: +31 168327730

Hitachi Construction Machinery (Europe) N.V.Domestic Dealer4903 RH OOSTERHOUTT: +31 162484400F: +31 162457453

NORWAYNanset Standard ASN-3271 LARVIKT: +47 33132600F: +47 33114552

POLANDTONA Sp z o.o.41-940 PIEKARY SLASKIET: +48 322899533F: +48 323873061

PORTUGALMoviter Equipamentos Lda2403-001 AZÓIA, LEIRIAT: +351 244850240F: +351 244850241

ROMANIAStar West Market Impex S.R.L3700 ORADEAT: +40 259425224F: +40 259425225

RUSSIAHitachi Construction Machinery (Europe) N.V.Russia-CIS Office107005 MOSKVAT: +7 959335133F: +7 959335130

Tech Stroy Contract125367 MOSKVAT: +7 954247513F: +7 954247514

SERBIA-MONTENEGROIndustrial Equipment Ltd.11080 BEOGRAD (ZEMUN)T: +381 113077086F: +381 113077090

SLOVAKIAVEŽA, s.r.o.SK-040 11 KOŠICET: +421 7898963F: +421 557898961

SOUTH AFRICAHitachi Construction Machinery Southern Africa Co. Ltd.1508 DUNSWARTT: +27 118944211F: +27 119181835

SPAINHispano Japonesa de Maquinaria S.L.24410 CAMPONARAYA (Léon)T: +34 987464046F: +34 987463072

Intertrack & Expormac S.A.38291 LA LAGUNA - TENERIFET: +34 922 630633F: +34 922 632737

Moviter Equipamentos Lda28022 MADRIDT: +34 913291819F: +34 913292517

Hitachi Construction Machinery (Europe) N.V.Iberia Office28002 MADRIDT: +34 917459962F: +34 917457441

Serex S.A.24560 TORAL DE LOS VADOST: +34 987545805F: +34 987544280

SWEDENDelvator ABSE-241 38 ESLÖVT: +46 41369200F: +46 41369218

SWITZERLANDProbst Maveg AG.CH-3250 LYSST: +41 323870808F: +41 323870802

TUNESIASociete de l'air Comprime et du Materiel Industriel2035 Ariana TUNIST: +216 71712700F: +216 71715777

SEIMA SARL1001 TUNIST: +216 71334923F: +216 71330177

TURKEYEnka Pazarlama Ihraca Ithalat A.S.81700-Tuzla ISTANBULT: +90 2164466464F: +90 2163951340

Hitachi Construction Machinery (Europe) N.V.Middle East Center - Istanbul Office80300 -Zincirlikuyu ISTANBULT: +90 2122753322F: +90 2122731243

UKRAINEEuromash Ltd.1601 KIEVT: +380 442464088F: +380 442464047

UNITED ARAB EMIRATESHitachi Construction Machinery (Europe) N.V.Middle East CenterLOB15-322 JEBEL ALI FREE ZONE, DUBAIT: +971 48818221F: +971 48818772

UNITED KINGDOMHitachi Construction Machinery (Europe) N.V.UK OfficeBA2 3EW BATHT: +44 1225402302F: +44 1225402301

HM Plant Ltd.HEBBURN, TYNE & WAR, NE31 2JZ T: +44 1914308400F: +44 1914308500

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HITACHI CONSTRUCTION MACHINERY (EUROPE) NV, SICILIËWEG 5, HAVEN 5112, 1045 AT AMSTERDAM, THE NETHERLANDS, T +31-(0)20 44 76 700, F +31-(0)20 44 76 750, WWW.HCME.COM

Picture this: a common construction site. The only thing extraordinary is the breed of excavator. This is the naturalhabitat of the Zaxis 210. Thanks to the quality, size and power of this machine, it is fast becoming a common sightacross Europe. Its popularity speaks volumes for its versatility - satisfaction guaranteed. Reliable solutions

A COMMON SITE

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