Production gets under way in the new HIPOWER manufacturing center

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27 Oct 2018

The North American subsidiary of HIMOINSA has designed a new dealers program that provides it with a solid structure with which to market its new product lines: SafeGuard, Heavy Duty Industrial and Tier 4F in the USA and Canada.

HIPOWER SYSTEMS, the new manufacturing center of HIMOINSA in North America, has begun its activity in its new factory in Olathe, Kansas. The 515,000 square feet facility features the most advanced technology for the manufacturing of generator sets for the North American market.

With a production capacity of 10,000 units per year, HIPOWER expects its turnover to grow by 32.9% by 2023 (CAGR 2017-2023). "This would make it HIMOINSA’s manufacturing center with the highest growth over the next four years", states Francisco Gracia, Executive Director of HIMOINSA, who has highlighted the important role that HIPOWER plays in the company's growth strategy. For his part, Tetsuya Yamamoto, Chairman and CEO of Yanmar Energy System (YES), adds that "the decision to convert the old assembly plant into a manufacturing center was the best way to increase our presence in North America, speed up delivery times and offer more competitive prices."

HIPOWER entered the North American market in 2004 when it opened an assembly plant, whose components were imported from the Headquarters of HIMOINSA in Spain. With this new project, HIPOWER starts full-scale manufacturing in Kansas, the same state in which it has been operating for the past 14 years, albeit now with a manufacturing center five times larger than the previous one. At its new manufacturing facility, HIPOWER will design and manufacture all generator components, which will enable it to grow more rapidly and increase its market share in the generator set industry in the United States and Canada.

The size of the market for generator sets in North America is around $3.28 billion - one of the largest consumer markets for generator sets in the world. That is something the company's dealers who attended the inauguration of the new factory are looking to capitalize on; these North American industry experts “which constitute a solid commercial network for us", according to Samuel Silva, CEO at HIPOWER, who goes on to say that "what is most important for the company is to have a quality product and a reputable dealers network to represent us in every State in the country. At this point in our new North American strategy we are off to a very successful start."

Through its new factory, HIPOWER has more than double its human capital staff which aligns very well with its growth objectives. Mayor Michael Copeland and Congressman Kevin Yoder highlighted HIPOWER’s financial contribution to the city of Olathe and the state of Kansas as well as HIPOWER’s commitment to American manufacturing and the importance of Made in the USA.
"HIPOWER SYSTEMS remains fully committed to preserving a 'Made in the USA' approach", explains Rafael Acosta, Americas Business Units Director at HIMOINSA, who adds that the company's expansion in the USA "allows us to develop a product that evolves continuously with the market."