Hitachi in negotiation for HM Plant takeover

Hitachi Construction Machinery Europe is in talks with UK distributor HM Plant about acquiring a controlling interest in the
company, a source within the manufacturer has confirmed. It already owns 30% of its distributor and aims to take a controlling interest within three years.

“Such a move would be a natural development of our business and in line with moves across Europe,” said the source. The manufacturer has stated its aim to move more into the retailing of its products and already controls distribution in Holland.

HM has been the UK’s Hitachi distributor for more than 20 years and claims to have been the UK’s biggest supplier of mid-range excavators for 21 of the past 23 years, and to be the leading European distributor of Hitachi Construction Equipment.

In 2002/03, following the demise of the Fiat Hitachi partnership, HM successfully resisted CNH’s wish for it to remain in the fold as the Fiat Kobelco distributor, preferring to remain with Hitachi. 

Following the opening of Hitachi’s new factory in Amsterdam, HM moved its headquarters from Bridgwater in Somerset, to a new 2.8ha site in Hebburn, Tyne and Wear, citing one of the primary reasons as the site’s proximity to the port where the machines are imported. 

The manufacturer does not expect to make any announcements until the talks have concluded, probably after the summer. HM Plant was not available for comment.