Production Gets Under Way at the New HIPOWER Manufacturing Center
October 31, 2018
Yanmar Co., Ltd.
HIPOWER SYSTEMS, a group company of YANMAR subsidiary, HIMOINSA, has opened a new manufacturing center in North America. Production has now begun at its new factory in Olathe, Kansas, a 515,000 square feet facility featuring 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 .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 “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 doubled 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."
In the emergency sector, HIPOWER dealers will market the SafeGuard and Heavy Duty Industrial ranges that include gas and diesel (UL certified) generator sets. A new generation of generator sets to cover the needs of Small Businesses, with Yanmar and FPT engines, and of the Industrial sector, with Yanmar, FPT, MTU and Mitsubishi engines.
As far as the Prime application is concerned, HIPOWER has developed a full range of diesel Tier 4F generator sets powered by Isuzu and John Deere engines; not to mention several gas-powered generator set models.
Evolution of HIPOWER
2004: HIPOWER SYSTEMS opens an office and begins marketing generator sets in Lenexa, Kansas.
2009: The first assembly line is set up.
2010: HIPOWER SYSTEMS sells more than 1,000 generator sets during year one.
2012: HIPOWER SYSTEMS’ custom-built, state-of-the-art manufacturing facility opens. It sells more than 2,000 generator sets.
2013: The company expands twice, developing and launching a full line of natural gas (NG) generators for Oilfield and Standby applications.
2014: HIPOWER SYSTEMS' generator sets are named ‘Best New Product of the Year’ by Consulting-Specifying Engineer in the Emergency Power category. It sells more than 3,000 generator sets.
2015: The company becomes the first generator set manufacturer to use EPA-approved Waukesha gas engines in its portable gensets.
2016: The company opens a 464 m² Service and Sales Center in Tulsa, Oklahoma. The entire HIPOWER SYSTEMS line is certified to withstand wind speeds of up to 180 MPH. It sells more than 4,000 generator sets.
2018: New manufacturing center in Olathe, Kansas.
- Note: Information contained in the news release is valid at the time of publication and may differ from the most recently available information.