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Labor Shortage Delays Takeuchi’s New Factory

Akihiro Komuro Takeuchi Mfg. has announced a revised construction schedule for its new factory, moving the start date back from January 2028 to May 2029, a delay of 16 months.
The company cited labor shortages in Japan’s construction industry. Higher construction costs and changes to some specifications also raised the total investment from about JPY 18.0 billion to JPY 24.6 billion. The planned size and production capacity remain unchanged.
Takeuchi acquired the land in April 2026. Site preparation and factory construction are scheduled to begin in October 2026. The building is due for completion in January 2029, followed by the installation of production equipment by April 2029.
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SANY Brings Multiple Power Options To Mining Market
SANY exhibited equipment for mining and heavy-duty work at Mining Indonesia 2026, held in Jakarta Sept. 9-12. The display focused on electric and hybrid machines.
The lineup includes the SY215F excavator, the upgraded SY1050H excavator, the SW956E electric wheel loader and the STC1100T6 truck crane.
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Hanwha Completes Medium-Speed Engine Factory
On August 19, Hanwha Engine completed construction of a factory for four-stroke medium-speed engines at its headquarters in Changwon, South Gyeongsang Province. The 8,300-square-meter plant is set up for mass production.
Hanwha Engine has mainly produced low-speed engines for main propulsion in large commercial vessels. The new factory will produce four-stroke medium-speed engines for onboard power generation, expanding the company’s range to cover both propulsion and onboard power.
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Yanmar, Hitachi Plan Compact Equipment Venture

Akihiro Komuro Yanmar Holdings and Hitachi Construction Machinery said they have signed a letter of intent July 23, 2026, to explore possible collaboration in the compact equipment business.
The companies said the construction equipment industry is facing more diverse customer requirements, faster technological change and intensifying global competition. In the compact segment, they believe closer cooperation between full-line manufacturers and specialist producers may be needed to sustain growth and…
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HD Hyundai Heavy Wins U.S. Data Center Power Order
HD Hyundai Heavy Industries says it has signed a USD 673.8 million contract with U.S.-based energy infrastructure developer Corban Energy Group to supply power generation systems for data centers. It is the company’s largest-ever order for power generation engines.
The systems will use HD Hyundai Heavy Industries’ 9.6 MW-class HiMSEN medium-speed engines and provide a combined generating capacity of 1,000 MW. The equipment will supply power to data centers operated by a major U.S. technology company.
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Diesel Costs, Shortages Disrupt Palm Harvests
Rising diesel prices and fuel shortages are disrupting palm fruit harvesting in Malaysia and Indonesia. Smallholders in Borneo and Sumatra have reduced harvesting activity, raising the risk of lower palm oil production if the disruption continues.
In the Malaysian states of Sabah and Sarawak, the price of unsubsidized diesel has risen by almost 120%. The two states accounted for 43.9% of Malaysia’s 20.28 million tons of crude palm oil production in 2025. Subsidized diesel is available at US 51 cents (MYR 2.10) per liter, but the monthly allocation is capped at 200 liters, well below the 500 liters or more that farmers say they need.
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IHI Tests 6 MW Ammonia-Fueled Land-Based Engine

Akihiro Komuro IHI Power Systems in July began operating a demonstration plant using a 6,000kW ammonia-fueled reciprocating engine at its Ota Plant in Gunma Prefecture. The engine uses ammonia and heavy fuel oil in a dual-fuel configuration and can also operate entirely on heavy fuel oil. The company is targeting both an ammonia fuel ratio and a greenhouse gas emissions reduction of more than 90%.
The demonstration will evaluate the complete power generation system, including engine performance, fuel supply equipment, exhaust aftertreatment, leak detection and safety controls. Fuel handling and exhaust treatment are particularly important because ammonia is toxic and can produce unburned ammonia and nitrous oxide under certain combustion conditions. IHI Power Systems plans to complete the testing during fiscal 2026 and begin commercial sales in fiscal 2027.
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Government Links Semiconductor, AI Investments
The South Korean government announced a large industrial investment program in June centered on semiconductors, physical AI and AI data centers. The plan is intended to expand domestic production capacity and connect the country’s semiconductor industry with growing demand for computing infrastructure and industrial automation.
Samsung Electronics and SK Hynix are expected to invest a combined $541.03 billion USD (KRW 800 trillion) in new semiconductor capacity in southwestern South Korea. Samsung has selected Gwangju as a candidate location for a new production base, while SK Hynix is also considering an additional site in the region. A separate advanced semiconductor packaging cluster, involving approximately $54.78 billion USD (KRW 81 trillion) in investment, is planned for the Chungcheong region.
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Investment for AutoAlliance MHEVs Approved

Akihiro Komuro Thailand’s Board of Investment in July approved a THB 7 billion, approximately USD 210 million, investment by AutoAlliance Thailand (AAT). The joint venture between Mazda Motor and Ford Motor will upgrade its existing production facilities, mainly for Mazda vehicles, in preparation for a B-segment SUV using mild hybrid electric vehicle technology.
The investment will introduce additional automation and robotic equipment in chassis welding, body assembly, painting and final assembly. The upgrades are intended to improve production efficiency and accuracy while allowing the plant to handle the additional components and manufacturing requirements of the new MHEV model.
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Hitachi Tests Remote Construction Equipment

Akihiro Komuro Hitachi Construction Machinery announced that a joint demonstration test will begin with Fukudome Kaihatsu in Tosa, Kochi Prefecture, using a ZX200A-7 20-ton class hydraulic excavator and a real-time digital twin platform. The test will be conducted in June 2026 at a river dredging project site in the Niyodo River Mochiishi District.
The platform integrates 3D terrain data, camera images, construction machinery, vehicles, and worker location information in real time, and reproduces the worksite in a virtual 3D space. The demonstration will compare remote operation under direct visual observation, remote operation using camera images, and remote operation using the real-time digital twin platform, in order to verify its effect on safety and productivity.
Power Systems Research
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Akihiro Komuro Senior Research Analyst – Far East and Southeast Asia
Akihiro Komuro is based in Tokyo, Japan. He is responsible for collecting pertinent market data, executing special projects, analyzing forecast trends, attending trade shows across the Far East and Southeast Asia regions, and updating all OE Link™ data for Japan, South Korea, and the nations of Southeast Asia. After studying at Shukutoku University, Mr. Komuro gained extensive experience in the precision instrument and machinery markets and was actively engaged in international trading of marine engine parts. Mr. Komuro is a regular contributor to PSR’s monthly PowerTALK newsletter and provides forecast trend commentary covering the Far East and Southeast Asia regions for PSR’s Quarterly Update Bulletin. Mr. Komuro has worked with Power Systems Research since 2015.
Erik Martin Director – Asia Region
Erik Martin oversees PSR’s research and business development teams in China, India and Japan and has worked in these and other Asian countries. Erik holds a B.A. in Chinese Language from the University of Minnesota and attended Nankai University in Tianjin, China. Erik has been Director – Asia Region at PSR since 2014.
Tohan Research, Inc.
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Shinji Yasueda Managing Director Japan
Shinji Yasueda is the Director of Tohan Research Group in Japan. He graduated from Kyushu University with a Master’s in Mechanical Engineering, and also has his Ph.D. in Mechanical Engineering. Shinji has experience developing diesel and gas engines, as well as consulting on the development of industrial engines. He has been published in ISME in 2011 and ASME in 2012. Shinji joined the Power Systems Research team in 2012.
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