|Hitachi and Mitsubishi Electric Agree
on Cross-Supply of General
Industrial Equipment Sector Products
Tokyo, Japan, July 9, 2001 -- Hitachi, Ltd. (TSE: 6501) and Mitsubishi
Electric Corporation (TSE: 6503) announced today that they have agreed
to supply each other with certain types power distribution control
and factory automation equipment products. The products concerned
fall in the category of general industrial equipment.
The agreement calls for Hitachi to supply Mitsubishi Electric with
specified molded transformer models and Mitsubishi Electric to supply
Hitachi with specified programmable controllers, programmable indicators
and network products. Each company will market the products it buys
from the other under its own brand name.
Despite resurgent demand for products in a few sectors, such as semiconductor
manufacturing and packaging equipment, the Japanese industrial equipment
market is unlikely to see substantial growth in demand over the medium-to-long
term. This severe environment, in combination with declining prices
in a market made more competitive by the entry of overseas companies,
has created an urgent need for industrial equipment manufacturers
to narrow and refocus their businesses so as to optimize utilization
of management resources and boost competitiveness.
Hitachi believes the expanded production of molded transformers made
possible by the cross-supply of products will help to further solidify
the company's leading position in the transformer business. It plans
to use the fuller lineup of programmable controllers and the CC-Link*
compatible network products made available by the agreement to strengthen
the company's solutions businesses.
Mitsubishi Electric intends to exploit the cross-supply of products
to maintain its No. 1 status in the domestic factory automation business,
while also building stronger competitiveness at the global level.
The Company intends to utilize OEM purchasing in the transformer business
sector to strengthen its production structure.
CC-Link is an open field network promoted by the CC-Link Association,
and organization chaired by Dr. Takashi Sekiguchi, Professor Emeritus
of Yokohama National University, with about 190 participating partners
and seven locations around the world. The network features high speed
of 10Mbps and reliability ensured by the requirement that all compatible
products clear noise tests. It enables high-speed transmission of
control signals between FA equipment units with a small number of
signal lines. CC-Link has been certified as meeting the international
SEMI Standard for semiconductor and liquid crystal devices.
|WRITTEN BY Corporate Communications Division