Hitachi Construction Machinery (UK) expands operations into Tyne Dock
23rd December, 2019
Hitachi Construction Machinery (UK) has expanded its business operations by acquiring a new building to support its after sales division.
The company, which supplies heavy duty construction equipment, has moved its Product Support Department into a new 22,800 sq. ft. facility at Tyne Dock in South Shields.
The new building is expected to be ready in the new year and is currently undergoing refurbishment to accommodate over 6,000 lines of parts, which the company distributes throughout the UK and Ireland.
Up to 36 members of staff will also move into the new building, which will include workshop space for repairs and overhaul work, re-manufactured components, an on-site training facility for staff and engineers and a special application centre for 3D Semi-Automation and machine control equipment.
The company moved its headquarters into a purpose-built seven-acre site at Monkton Business Park in 2004 but has outgrown the space and needed to find a new location to grow its after sales business and create more space for parts and workshops.
Ward Hadaway’s Real Estate Team provided legal advice on the 10-year lease and a licence to make the necessary alterations to the building to accommodate office and workshop space.
Hitachi Construction Machinery (UK) was named as one of the 50 fastest growing companies across the North East this year. The annual list, which is compiled by Ward Hadaway, recognises privately-owned profitable organisations that have seen the biggest average annual growth rate in their turnover.
The company supplies mini, medium, large and wheeled excavators, wheel loaders, parts and servicing to the UK and Irish construction industry and saw a 11.4% increase in annual turnover taking them to revenue of £237m for their last financial year.
Stephen Creaser, Director of Product Support at Hitachi Construction Machinery (UK), said: “The HCMUK Product Support Department is committed to providing our customers with the best possible aftersales support. These new premises will enable us to increase our parts holding capacity, provide a dedicated product support workshop facility and product training centre which will enable us to grow our aftersales business and increase our value chain while focusing on customer interest first.”
David Roberts, CEO of Hitachi Construction Machinery (UK), said: “Hitachi has an excellent reputation in the construction machinery market for the quality and durability of our machines, but the support we provide across the whole of the UK through our network of branches and field engineers, underpins the high level of customer satisfaction that leads to repeat business time and again. So this investment to expand our national service and parts facilities is essential if we are to maintain and enhance that reputation.”
“Hitachi Construction Machinery (UK) has worked closely with Ward Hadaway for a number of years now, because they make the process simpler and quicker, and this was the case with the lease on the facility at Port of Tyne. The timescale between the initial enquiry and getting the keys was a short and hassle free process, allowing us to focus on the operational requirements.”
Olivia Brown, a solicitor in Ward Hadaway’s Real Estate Team oversaw the transaction. She said: “It’s great to see successful organisations such as Hitachi grow and expand operations here within the North East. The new building at Tyne Dock is close to Hitachi’s headquarters at Monkton Business Park and the move will enable them to specifically focus on their after sales division and enhance the existing service to their customers.
“We are pleased to have facilitated this transaction by acting on behalf of the organisation in relation to securing the lease of the new building and I would like to wish them every success in the future.”
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