Hitachi Construction Machinery began accepting orders for the ZX500LCK-7 demolition excavator in Japan on Oct. 1. Three interchangeable boom and arm configurations allow the machine to handle work from upper floors to foundations.

Maximum attachment weights are 5,600 kg for the Monster High Lift configuration and 6,100 kg for the two-piece boom configuration.

Hitachi also revised the transport dimensions and hydraulic piping of the boom and arm assemblies. These changes allow daytime transport under specified conditions and assembly work on a lower platform.

Source: Hitachi Construction Machinery

PSR Analysis: The higher attachment weight limits apply in HEAVY mode, which restricts the working area. In the two-piece boom configuration, operators can use a 5.3-ton attachment over a wider area or a 6.1-ton attachment within a narrower area. The benefit depends on whether the heavier attachment can reach the required work from the available machine position.

Kobelco also launched a 65-ton-class demolition excavator in Japan on Oct. 1. Its high-reach configuration carries a 3.7-ton attachment at an arm-tip height of about 28.2 meters, compared with Hitachi’s 2.7 tons at 28 meters. Machine sizes, configurations and working areas differ, so these figures alone do not establish which performs better. They show how both manufacturers combine reach with heavier attachment capacity.

Interchangeable fronts were already available on Hitachi’s previous model. The new machine adds attachment choices through working-area controls while improving transport and assembly. This extends its capabilities were moving to a larger machine would add site and transport constraints. The development combines physical machine design with more precise control of where heavier attachments can be used. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

Medium-speed HiMSEN gas engines would generate electricity offshore for users on land. ABS reviewed the basic concept, electrical system and stability of the floating structure.

ABS said growing demand from AI and data centers, together with land and permitting constraints, is increasing interest in offshore power generation.

Source: ABS

PSR Analysis: The target customers are coastal data centers and industrial facilities whose expansion is constrained by electricity supply. Offshore generation reduces the need for land for a power plant. It still requires a suitable mooring location, gas supply and a power connection to the customer. The customer’s facility need not be directly beside the sea, but those connections must be practical.

Demand for dedicated power is already producing orders. Wärtsilä announced a 282 MW land-based gas-engine power plant order for a US data center in October. HD KSOE is addressing the same need. Floating generation could be attractive where land and construction constraints are severe. Any timing advantage will depend on completing fuel and power connections as well as the plant itself.

Established operators already combine several parts of this business. Karpowership operates 45 power ships and is developing floating LNG supply facilities with Seatrium. Kinetics, in the same corporate group, is working with Mitsui O.S.K. Lines on floating data centers.

The HD Hyundai group has engine and shipbuilding capabilities, but the approval covers only the basic design concept. The announcement identifies no customer, project location or date for starting electricity supply. Partners that can arrange fuel supply and electricity sales will therefore matter in the first projects. The opportunity lies in coastal locations where offshore construction resolves a real constraint, and the supporting infrastructure can be delivered. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

XCMG has broken ground on a center in Balikpapan, the company’s first overseas facility dedicated to overhauling and remanufacturing mining equipment components.

The planned center combines component repairs, regional parts storage, local technician training and used equipment refurbishment. It will link used-component collection with repairs, replacement parts and field service.

XCMG expects local overhaul work to reduce downtime and costs. The investment expands its after-sales support alongside manufacturing, research and development, and financing operations in Indonesia.

Source: XCMG

PSR Analysis: Indonesia’s equipment demand is affected by government limits on mine production and slower public works. Equipment distributor and mining contractor United Tractors reported a 27% fall in Komatsu sales in the first half of 2026. Sales of large mining machines fell 55%. Its mining contracting business reported declines of 3% in coal production and 10% in overburden removal—the earth moved to expose coal. Mining operations continued, while parts and maintenance revenue edged up from IDR 5.4 trillion to IDR 5.5 trillion, helping support revenue during weak equipment sales.

I visited Mining Indonesia in Jakarta in September and spoke with local businesses. One account described large Chinese dump trucks with around 10,000 operating hours retaining usable bodies and frames while complete engines and transmissions were replaced. This allowed owners to continue using the trucks and defer buying new ones. I also heard of suppliers offering to place spare engines and transmissions at customers’ sites, with payment due only when used. This reduces advanced spending on spares and the wait after a breakdown.

XCMG’s planned center would capture more of this spending through major repairs, component remanufacturing and used equipment refurbishment. Supporting longer machine life can generate repair revenue and maintain customer relationships until replacement purchases are made. However, parts stocks, facilities and technicians carry costs. Prolonged reductions in machine use would also affect repair demand. Returns will depend on attracting enough work from equipment already in service.

Equipment sales and rental company Intraco Penta is also strengthening parts, maintenance and rental operations. Separately, an interview described a crane rental business considering selling its fleet and closing because falling rental rates could no longer cover staffing and other costs. Repairing customers’ machines and owning rental fleets have different business conditions. XCMG’s investment would extend Chinese competition into repair and remanufacturing services long established by Japanese and Western suppliers. Support for continued machine use could become an increasingly important part of keeping customers, alongside the price of new equipment. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

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.

Source: Takeuchi

PSR Analysis: Takeuchi is building the factory to prepare for future crawler loader demand. Until it opens, the company will have to rely on its existing plants for longer than planned.

Much will depend on when demand recovers. A gradual recovery would ease pressure during the delay, while a sharp rise in orders before 2029 could tighten capacity at its existing plants.

The revised budget is about 37% higher, although planned capacity is unchanged. This raises the cost per unit of new capacity and is likely to lengthen the payback period. More broadly, the delay shows how Japan’s shortage of construction workers can slow factory expansion in other industries. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

The lineup includes the SY215F excavator, the upgraded SY1050H excavator, the SW956E electric wheel loader and the STC1100T6 truck crane.

For mining haulage, SANY will display the SE588 electric heavy-duty truck, the SYZ445C-8REEV electric dump truck and the SRT100S hybrid wide-body truck. The SYL1520DC1 Deutz generator set will also be shown to provide power for on-site operations.

Source: Sany

PSR Analysis: Indonesia’s coal and nickel mines use large fleets for excavation, loading and haulage. These machines work long hours, so energy use and downtime directly affect cost per metric ton. Operators want to reduce fuel use and emissions while keeping output stable.

Which power system works best depends on the machine and the mine. Battery-electric vehicles suit fixed routes with charging facilities. Range-extended and hybrid vehicles can operate longer where charging capacity is limited. Diesel excavators and generator sets continue to support remote sites.

SANY is showing diesel, battery-electric, range-extended and hybrid equipment at the same event. This gives customers a choice based on operating conditions and charging capacity. It also shows that Chinese suppliers are now competing on power options as well as price. Sales plans to depend on performance in the field and local support for charging, parts and service. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

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.

The new plant received support through South Korea’s reshoring subsidy program, with funding from the national government, South Gyeongsang Province and Changwon City. Hanwha Engine plans to expand its medium-speed engine business and develop hybrid propulsion and power solutions that combine engines with energy storage.

Source: Hanwha

PSR Analysis: Orders for large vessels, including LNG carriers, are supporting demand for medium-speed engines. Large ships use separate generator engines to power cargo-handling equipment, pumps, air conditioning and other onboard systems. Electrical demand is particularly high on LNG carriers, which often use several medium-speed generator engines.

Hanwha Engine can now supply low-speed main engines and medium-speed generator engines. The company can now supply a larger share of the engine package for each vessel and expand its business with Korean shipyards and shipowners.

By smoothing changes in onboard electricity demand, energy storage can help generator engines run more efficiently. Hanwha’s progress will depend on medium-speed engine orders, output at the new plant and sales of packages that combine engines with energy storage. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

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 competitiveness.

The discussions will examine how Yanmar Compact Equipment’s expertise in mini and midi excavators, wheel loaders, compact track loaders and tracked carriers could be combined with Hitachi Construction Machinery’s global construction and mining equipment business. The objective is to strengthen product competitiveness and deliver greater value to customers.

Both companies intend to retain their individual brand identities and continue operating separate dealer networks. Yanmar is seeking to optimize its product lineup and strengthen aftermarket support, while Hitachi Construction Machinery is using external partnerships to broaden the range of products and solutions available to its dealers and customers.

Source: Hitachi Construction Machinery

PSR Analysis. At this stage, the agreement is not an integration plan. It is a way for the two companies to look for areas where cooperation could improve their position without giving up their brands or dealer relationships. That approach makes sense in compact equipment, where manufacturers must support a wide product range while also investing in electrification, operator assistance, connectivity and market-specific configurations.

Because the dealer networks will remain separate, the initial value is unlikely to come from channel consolidation. More meaningful gains could emerge behind the sales organization through product cross-sourcing, common platforms and components, shared development work or a clearer division of production responsibilities. These measures could reduce overlapping investment and allow both companies to fill gaps in their product ranges more quickly.

No decision has yet been made on joint development, OEM supply or the use of common powertrains and engines. The next indication of the partnership’s direction will therefore come from changes to the two companies’ product portfolios, manufacturing roles and component sourcing. The market impact will depend on whether the LOI develops into a practical product and production strategy. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

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.

HD Hyundai said the HiMSEN engine combines high output and generating efficiency with the reliability required for continuous 24-hour operation. The latest contract follows a USD $425 million agreement signed with U.S. energy infrastructure developer AEG in April, also covering power generation equipment for data centers.

The wider HD Hyundai Group is building a broader position in this market. HD Hyundai Heavy Industries supplies engine-based generating systems, while HD Hyundai Electric is expanding its power distribution and electrical equipment business. HD Hyundai Marine Solution is also developing maintenance services for power generation engines.

Source: PR Newswire

PSR Analysis. The significance of this contract goes beyond its size. Technology developed for marine propulsion and onboard power generation is moving into the land-based data center market at utility scale. With a combined capacity of 1,000 MW, the project is far larger than conventional building-level standby generation and shows that engine-based power is becoming part of the core infrastructure behind major digital facilities.

In markets where data center construction is moving faster than grid expansion, operators need power capacity that can be installed in stages and kept available while individual units undergo maintenance. A plant built around multiple medium-speed engines can offer flexibility and redundancy. The April and August contracts also suggest that this is developing into a repeat market for HD Hyundai rather than a single project.

Continued growth could create a new challenge for engine manufacturers. Production capacity and service resources will have to be divided between marine customers and large land-based power projects. HD Hyundai is well placed because the group can combine engines, electrical equipment and long-term maintenance, allowing it to capture revenue beyond the initial equipment sale. However, the fuel specification, number of engines, delivery schedule and actual operating profile have not been disclosed. Those details will be needed to judge the project’s generating cost and emissions performance.  PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

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.

Higher fuel costs have forced some farmers to reduce their harvesting frequency from around 2.5 rounds per month to between one and 1.5 rounds. The added burden includes not only transport costs but also the expense of operating generators and other machinery. Industry representatives warned that Sarawak’s yields could fall by 15–20% if the situation continues.

In Indonesia, diesel shortages since mid-July have restricted operations in Sumatra, which accounts for 55% of the country’s palm oil output. Vehicles and equipment used on the plantations depend on diesel, and harvesting intervals have lengthened from the usual eight to ten days to between eight and twelve days.

Source: Reuters

PSR Analysis. Palm oil is produced by pressing fresh fruit bunches harvested from oil palm trees. Its uses extend well beyond bottled cooking oil. It is found in margarine, confectionery, baked and processed foods, while palm-based ingredients are also used in soap, detergent, cosmetics, industrial products and biodiesel.

Lower output in Malaysia and Indonesia can therefore affect a wide range of consumer and industrial supply chains.

Once a fruit bunch is cut, it must be collected from the plantation, moved to a loading point and transported by truck to a mill. The bunches deteriorate quickly and normally need to be processed within 24 hours. The role of diesel in this process is direct: it powers plantation transport vehicles, trucks, agricultural equipment and, in some remote operations, generators.

In eastern Malaysia, the problem is the cost of diesel. In Sumatra, it is the availability of diesel. Neither problem directly affects the growth of the oil palm trees. Instead, it reduces how often farmers can harvest, collect and transport the fruit, leaving less feedstock available for the mills.

The effect on equipment demand is mixed. More expensive diesel makes fuel-efficient machinery more attractive, but it also weakens smallholders’ cash flow and their ability to invest. Many operators may keep older machines in service longer, supporting parts and repair activity while delaying new equipment purchases.

Electrification is not an immediate answer in remote plantation areas where grid supply and charging infrastructure remain limited. For the foreseeable future, fuel efficiency, durability, ease of maintenance and fuel monitoring will carry more weight in purchasing decisions.  PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia

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.

The 6 MW unit is based on the 1.6 MW 28ADF ammonia-fueled engine developed for coastal vessels and has been scaled up to a V18 configuration for stationary power applications. It also incorporates power generation control technology developed for auxiliary marine engines.

IHI Power Systems is targeting industrial power generation, remote islands, data centers, mines and industrial parks. The system will be marketed as an option for replacing or upgrading existing diesel and heavy-fuel-oil generating equipment.

Source: IHI

PSR Analysis: The significance of this announcement is that ammonia engine technology developed for marine applications is now being extended into the land-based stationary power market. Rather than developing an entirely new engine platform, IHI Power Systems is scaling up a 1.6 MW engine that already has operating experience on a commercial vessel. This should allow the company to apply its existing knowledge of combustion control, fuel supply, exhaust treatment and ammonia safety to the land-based system.

The initial product will use a dual fuel configuration rather than operating exclusively on ammonia. The ability to switch to heavy fuel oil means that power generation can continue if ammonia is unavailable or if a problem occurs with the ammonia-related equipment.

For mines, remote islands, industrial parks and data centers, where continuity of power supply is essential, fuel flexibility is likely to be an important consideration when evaluating the system.

Commercialization will involve more than the engine itself. An ammonia-based generating plant also requires fuel storage and supply equipment, leak detection, ventilation, safety controls and exhaust aftertreatment. Because ammonia is toxic and corrosive, additional specifications will also be required for piping, seals, valves and other fuel-handling components. The development of ammonia power generation could therefore create demand for engine manufacturers, and for suppliers of auxiliary equipment, control systems, exhaust treatment and fuel-handling equipment.

The commercial outlook will depend heavily on the price and availability of ammonia. Even if the engine performs as planned, the addressable market will remain limited if the cost of the fuel, storage equipment and safety systems is substantially higher than that of conventional diesel generation. Initial demand is therefore more likely to come from large industrial users that operate generating equipment for long periods, consume significant volumes of fuel and have both the financial capacity and a clear reason to invest in lower-carbon alternatives.

IHI Power Systems’ plan to begin commercial sales in fiscal 2027 indicates that ammonia-fueled reciprocating engines are moving beyond the research stage toward a defined product offering. The next points to watch will be continuous operating performance, maintenance intervals, the durability of the exhaust aftertreatment system, and the location and fuel supply arrangements of the first commercial installation. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia for Power Systems Research