Yanmar, Hitachi explore compact equipment partnership

Construction equipment manufacturers, Yanmar Holdings and Hitachi Construction Machinery, have signed a Letter of Intent (LOI) to explore collaboration in the global compact equipment market.

Signed on July 23, 2026, the agreement will see the two Japanese companies assess opportunities to work together in the compact equipment segment, combining Yanmar's expertise in compact machines with Hitachi Construction Machinery's global sales and support network.

The companies said the move comes as the construction equipment industry faces changing customer demands, rapid technological advancement and increasing global competition, with collaboration viewed as a way to strengthen competitiveness.

Under the proposed partnership, both companies said they would maintain their individual brand identities and continue operating independent dealer networks while investigating areas where they can create additional value for customers and dealers.

Potential areas of collaboration have not yet been detailed, with discussions expected to cover a broad range of opportunities aimed at supporting the long-term growth of the compact equipment business.

Yanmar executive vice president, Tetsuya Yamamoto, said the company sees the agreement as an opportunity to strengthen its compact equipment business while improving the value it delivers to customers.

"Through this Letter of Intent, we will explore synergy-generating collaborations and further enhance the value we provide in our compact equipment business," he said.

For Hitachi Construction Machinery, the announcement aligns with its broader strategy of expanding through partnerships.

President and executive officer, Masafumi Senzaki, said the company is targeting a position among the world's top three construction equipment manufacturers by 2030 and is pursuing a more open approach to collaboration.

"Our new corporate brand, LANDCROS, embodies one of our core desires to openly co-create new businesses and value with our customers and partners," Senzaki said.

"This Letter of Intent is one such initiative that embodies this commitment to open co-creation."

The agreement follows Hitachi Construction Machinery's recent announcement that it will adopt the LANDCROS corporate brand from 2027, as part of its long-term growth strategy focused on collaboration, innovation and expanding customer value.