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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.
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SK Construction Equipment Exports Expand
HD Construction Equipment signed a contract to supply 39 DEVELON articulated dump trucks to Rental Group, one of the largest construction equipment rental companies in Northern Europe. The contract is worth about EUR 12 million, or around KRW 20 billion. The order includes 13 units of 28-ton models and 26 units of 41-ton models, which are scheduled to be delivered during the year. The machines will be used in quarries, road construction projects, and large-scale tunneling work in Norway.
The company also secured a KRW 27 billion contract to supply 50 15-ton DEVELON bulldozers to the Polish military. This is the company’s first major military procurement order in Europe.
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Thai EV Adoption Pressures Production

Akihiro Komuro Ten Thai automotive and auto parts associations have warned that EV adoption is putting pressure on domestic production and that the country’s automotive industry could face a crisis. According to the industry groups, Thai manufacturers are struggling to compete with low-cost, zero-tariff EV imports from China, while local parts suppliers are seeing orders decline.
The associations, which represent more than 1,500 member companies, said in a letter to the government that the industry could face a major shock in 2027, when the current incentive scheme designed to support EV production is scheduled to end. They called on the government to review the EV policy before the incentives expire and to introduce urgent measures to support the industry.
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Komatsu Reports Record 2025 Sales but Profits Decline

Akihiro Komuro Komatsu announced that its revenue reached a record high for fiscal 2025 due to the effects of a weaker yen and improved pricing. However, the company explained that profits fell below the previous year’s level due to declining demand for construction machinery in North America and rising costs.
In North America, the company reported that demand for residential construction remained sluggish and that machinery purchases by rental companies had also declined. It also noted that the Asian market remained generally weak.
Conversely, demand for mining equipment remained high, with the resources sector underpinning its performance. It also stated that its parts and services business had performed steadily.
Furthermore, although Komatsu acknowledged that ‘the business environment remains uncertain’, the company expressed the view that ‘infrastructure investment and mining demand will remain robust’.
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