Hitachi is planning to construct its third mining equipment factory in Japan.
It is building the plant to keep up with the massive growth in coal mining in Asia, according to Bloomberg.
The factory is part of the company’s US$2.4 billion expansion plan, with production slated to begin as soon as 2013.
The Australian mining market has seen a massive tightening of the equipment space, with many manufacturers struggling to keep up with demand.
This market shortfall has seen Caterpillar expand its mining equipment manufacturing workforce in Tasmania, and Seven Group takeover National Hire Group to cash in on demand.
In one of the largest deliveries, Komatsu most recently signed an agreement with Rio Tinto to provide 150 automated haul trucks for its Pilbara operations.
Hitachi senior vice president Shinichi Mihara told Bloomberg “We have to keep customers waiting until the end of next year," adding that the company is talking to customers for new orders.
Its new plant is expected to generate an additional 20% in revenues for the company, as it plans to expand its supply of excavators in the 120 ton range by more than half by March 2014, and then producing around 510 excavators up to 2020.
Mihara added that dump trucks sales will also most likely triple in the next three years.