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TOKYO,
Japan, April 23, 2002 -- Hitachi Koki Co., Ltd. (TSE:6581) today announced
that it would split off its printer business using the corporate split
provisions of the Japanese Commercial Code. The decision was reached
at a meeting of the company's Board of Directors held on April 23,
2002. Hitachi Koki and Hitachi, Ltd. (TSE: 6501 / NYSE: HIT) simultaneously
announced that, it was decided, in meetings of both companies' Board
of Directors that, after the two companies agree on the details, Hitachi
Koki will establish a new company on October 1, 2002 and, on condition
that the split is approved at Hitachi Koki's general meeting of its
shareholders, sell all its shares to Hitachi. Hitachi's printer business
will then be merged with the new company.
As a result of this decision,
Hitachi Koki will be able to concentrate management resources on power
tools, thereby enabling it to increase R&D capabilities and global
sales strength. This, in turn, will further increase its competitiveness.
By combining Hitachi's
system solutions and color technologies with Hitachi Koki's high-speed
printing technology, Hitachi will create a printing solutions company
for the ubiquitous information society and expand its printer-related
business.
In today's rapidly changing
global market where the pace of changing market conditions increases
daily, corporations must stay ahead of market trends and provide a
high level of customer satisfaction to survive. Under these harsh
conditions, one key to survival is to make efficient use of management
resources by reevaluating core businesses and concentrating management
resources accordingly.
Hitachi Koki has been producing
power tools since it was founded. The needs of the Information Age
helped turn high-speed printers into pillars of its business. However,
taking into consideration the recent business environment, it was
decided that management resources should be concentrated in power
tools area.
In the power tools business,
Hitachi Koki will be able to take advantage of digital design tools,
such as 3-D CAD, to strengthen R&D, shorten R&D time for new products
and more quickly put attractive new products on the market. In addition,
the company will expand its business by broadening hardware store
sales routes in Japan and North America, forming strategic alliances,
and becoming involved in merger and acquisition activities with accessory
and consumable goods manufacturers to achieve globalization.
In addition, more resource
will be appropriated to the centrifugal separators business because
it is expected that the life-science field will achieve increased
growth rates.
Hitachi Koki's printer
business had been involved in joint business development activities
with Hitachi's Information and Telecommunications System Group. As
a result of this merger, such activities are expected to expand and
improve as the two sides come together and are reborn as a new Hitachi
subsidiary.
The printer market was
estimated at 3 trillion yen in 2001 and is expected to continue to
grow steadily. Demand for color laser beam printers is forecast to
grow at a 10% yearly rate.
Under these market conditions,
the newly formed company will combine high-speed printing technology
developed by Hitachi Koki and Hitachi's color printing technology.
This will allow the new company to aggressively expand business in
the home digital and business area. The new company will focus on
continuous form, laser beam printers and impact printers, for which
Hitachi Koki already has a large market share, and also monochrome
cutsheet laser beam printers, high speed color ink jet printers and
medium- and low-speed color laser beam printers, etc..
The company will also enter
the on-demand printing service business as well as consumable products,
including the recycling business. The new company will create printing
solutions on a global basis based on Hitachi's system solution technology,
thereby contributing to the realization of the ubiquitous information
society.
Hitachi, Ltd., headquartered
in Tokyo, Japan, is one of the world's leading global electronics
companies, with fiscal 2000 (ended March 31, 2001) consolidated sales
of 8,417 billion yen ($67.9 billion*). The company manufactures and
markets a wide range of products, including computers, semiconductors,
consumer products and power and industrial equipment. For more information
on Hitachi, Ltd., please visit Hitachi's Web site at http://global.hitachi.com.
* At an exchange rate of 124 yen to the dollar.
Hitachi Koki Co., Ltd.
manufactures and sells world-class products in three distinct markets;
power tools, printing systems and scientific instruments; with fiscal
2000 (ended March 31, 2001) consolidated sales of 130,682 million
yen ($1,208,045 thousand *). As a result of continuous R&D and human
resource development, the company has developed core technology leadership
in ultra-high-speed motors, ultra-high-precision machining and electronic
control technology. For more information on Hitachi Koki Co., Ltd.,
please visit Hitachi Koki's Web site at http://www.hitachi-koki.com.
* At an exchange rate of 123.9 yen to the dollar.
Schedule for Hitachi Koki split of its printer business:
| Approval of Split-off Plan by Board
of Directors: |
May 21, 2002 |
| Presentation of Split-off Plan of General
Meeting of Shareholders: |
June 26, 2002 |
| Split-off Effective: |
October 1, 2002 |
| Registry of Split-off: |
October 1, 2002 |
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