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Hitachi Industrial Invests in Sullair for More Compressor Business

 Hitachi Industrial Equipment System is going to invest US$30million (JPY3.2billion) to reinforce the production facilities of its group member Sullair which is engaged in the compressor business in the US. The site of the major Michigan Plant will be expanded to increase productivity by about 20%.

Sullair of US compressor manufacturer established in 1965 was acquired by Hitachi at JPY135.7billion in 2017. It has a competitive power in various industrial fields including automobile, chemicals, food or beverage in addition to the portable compressor for construction sites, and also large-medium sized movable or stationary compressors.

 According to Hitachi Industrial Equipment System, Sullair is doing good business thanks to the expanding US market caused by shale gas and shale oil. The sales amounted to JPY43billion only when the company was acquired, but it is said to have amounted to JPY60billion these years.

The investment plan includes an expansion of 80 thousand square feet for the construction of new building and also 280 thousand square feet for a parking space for employees, so that the existing facilities may be optimized. In addition, the company intends to introduce the Japanese technologies actively in order to manufacture an oil-free type compressor which has nearly not been handled. The company is planning to reinforce further the North American business of Sullair so as to make the business management more flexible for growth in future. 

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