Hitachi to Strengthen Social Innovation Business in Brazil
-- Aims to Quadruple Consolidated Revenues to US$ 1.5 billions by Fiscal 2015 compared to Fiscal 2011 --
São Paulo, Brazil, July 24, 2012 - Hitachi, Ltd. (TSE: 6501, “Hitachi”) today announced plans to further strengthen its business operations in Brazil, centered on the Social Innovation Business. Hitachi aims to expand consolidated revenues in Brazil to US$ 1.5 billion in fiscal 2015, the year ending March 31, 2016. This would quadruple consolidated revenues recorded in fiscal 2011. In addition to strengthening the Social Innovation Business, which centers on railway systems, power systems, information & telecommunication systems and social infrastructure systems, Hitachi will increase its sales capabilities in air-conditioning equipment, digital terrestrial broadcasting equipment, construction machinery and other businesses, establish a local production system, collaborate with local partners and take other actions to expand its business and operations in Brazil. Hitachi will invest US$ 300 million to strengthen its businesses in Brazil by fiscal 2015.
Hitachi has designated 11 regions as target regions in its new globalization plan. The Company is promoting the creation of locally- led corporate structures to strengthen business in each designated region. Among these regions, Brazil, which boasts the largest economy in South America, is projected to see a high rate of economic growth alongside China and India. Additionally, in anticipation of hosting of the 2014 FIFA World Cup and the 2016 Summer Olympic Games which will be held in Rio de Janeiro, Brazil is expected to continue investing in its infrastructure. For these reasons, Hitachi expects the market related to the Social Innovation Business, which is the primary focus of the company’s global growth strategy, to expand considerably. Over the past several years, Hitachi has been working steadily to increase its presence in Brazil. In October 2011, for example, the Company held “Hitachi Exhibition 2011 – New Solutions for Better Business,” a well-received Hitachi Group exhibition that showcased Hitachi’s products, solutions and services for existing and perspective customers, government officials and business partners. Hitachi is also implementing various measures to expand its business opportunities and operations.
For instance, in May 2011, Hitachi Plant Technologies, Ltd. formed an agreement with Mayekawa Manufacturing Co., Ltd. to collaborate on developing the compressor business in Brazil. In October 2011, Hitachi Kokusai Electric Inc. purchased 100% of the shares of the Brazilian broadcast transmitter manufacturer Linear Equipamentos Eletrônicos S/A, and, in the same month, Hitachi Construction Machinery Co., Ltd. established a joint venture with U.S. company John Deere for producing and selling hydraulic excavators. Looking ahead, Hitachi will continue pursue opportunities to establish manufacturing bases with local companies in the railway business, including monorails, as well as work to expand business related to thermal power plants, including gas turbines and environmental systems. In addition, the Hitachi will increase sales capabilities in data storage and other businesses in information & telecommunication systems, and implement other strategies to expand the Social Innovation Business. Hitachi’s plans also call for making substantial investments in R&D and other areas.
Through expansion of the Social Innovation Business, the Hitachi Group will contribute to Brazil’s development and the creation of a more sustainable society.