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Hitachi Construction last week said it has put plans for a $1 billion production expansion in China on hold because of the deepening global recession.
Expecting worldwide demand for excavators to decline more than 25 percent in the six months ended March 31, and potentially another 20 percent by year end, CEO Michijiro Kikawa told Bloomberg that the company will not implement new investment until it can determine how the market will recover.
The company also said it will halt plans to boost output in China because of the shrinking market there.
Headquartered in Moline, Ill., Hitachi Construction Machinery produces hydraulic excavators, earthmoving excavators, shovels and rigid haul trucks for the mining and construction industries worldwide.
