Hitachi, Ltd. (NYSE:HIT) today announced that it has reorganized the manufacturing
operations of its Home Appliances Division and its Heating & Lighting Division's Ome
Manufacturing Operations. The move is aimed at raising cost-competitiveness and building
a speedier manufacturing system in the Consumer Products Group. Effective April 1, 1999,
the two divisions will be set up as independent companies called Hitachi Taga Electronics
Co., Ltd. and Hitachi Lighting Equipment Co., Ltd. (both provisional names), respectively.
In addition, the ongoing transfer of the manufacturing operations of the Refrigeration & Air
Conditioning Division to Hitachi Tochigi Technology Co., Ltd., a new company
established in July 1998, will be continued and expanded. The manufacturing operations of
the AV Consumer Products Division and the Image & Information Media Systems Division
of the Information Media Systems Group will be transferred to Hitachi Joei Tech Co., Ltd.
and TOKAI TEC Co., Ltd., respectively, by the end of April 1999.
The Consumer Products Group has endeavored to cut fixed costs by streamlining its sales
and manufacturing divisions. The reorganization of all manufacturing divisions in the group
to independent companies has been achieved ahead of initial plans. The changes will
involve the reassignment of 3,300 employees, but some are involved in operations related
to the Information Media Systems Group. The number from the Consumer Products Group
alone will be 2,300. As a result, the number of employees in the Consumer Products Group
in Japan will be 1,100 at Hitachi, Ltd., 7,400 at manufacturing companies, and 3,000 at
sales companies.
In tandem with the reorganization of the manufacturing divisions, the corporate planning,
product planning and sales planning functions remaining at Hitachi, Ltd. will be
strengthened. Hitachi intends to boost profitability by focusing on digital and environment-
friendly products and moving into higher-value-added businesses targeting strategic user
segments.
The reorganization plan will be implemented following consultation with Hitachi, Ltd.'s
labor union.
<Overview of New Companies>
Hitachi Taga Electronics Co., Ltd. (provisional name)
Capital: 450 million yen (100% owned by Hitachi, Ltd.)
Establishment: April 1, 1999 (operations to begin on April 21, 1999)
Business: Design and manufacture of washing machines, vacuum cleaners, and
other products; manufacture of handheld PCs, color printers, etc.
(related to the Information Media Systems Group);
design and manufacture of hoist ink jet printers and others (related to
the Industrial Components & Equipment Division).
General Manager: Pending decision
Address: 1-1, Higashitaga-cho 1-chome, Hitachi-shi, Ibaraki Prefecture
Number of Employees: 1,400 (planned)
Sales: The sales target for the fiscal year ending March 31, 2001, is
96 billion yen.
Hitachi Lighting Equipment Co., Ltd. (provisional name)
Capital: 300 million yen (100% owned by Hitachi, Ltd.)
Establishment: April 1, 1999 (operations to begin on April 21, 1999)
Business: Design and manufacture of fluorescent lamps, light bulbs, and
various industrial-use lighting, etc.
General Manager: Pending decision
Address: 16-2, Shinmachi 6-chome, Ome-shi, Tokyo
Number of Employees: 250 (planned)
Sales: The sales target for the fiscal year ending March 31, 2001, is
13 billion yen.
(For reference: Outline of existing manufacturing subsidiaries)
Hitachi Tochigi Technology Co., Ltd.
Capital: 450 million yen (100% owned by Hitachi, Ltd.)
Establishment: July 1, 1998 (operations began on July 21, 1998)
Business: Design and manufacture of refrigerators, room air conditioners, etc.
General Manager: Mitsuru Murata
Address: 800 Tomita, Ohira-machi, Shimotsuga-gun, Tochigi Prefecture
Number of Employees: Currently 1,600 (to increase by 900 after reassignment)
Sales: The sales target for the fiscal year ending March 31, 2001, is
84 billion yen.
Hitachi Joei Tech Co., Ltd.
Capital: 32 million yen (100% owned by Chuo Shoji Ltd.)
Establishment: June 28, 1975
Business: Design and manufacture of color TVs; manufacture of displays,
imaging systems, and other image & information media systems
products (related to the Information Media Systems Group)
General Manager: Shigemasa Ito
Address: 292, Yoshida-cho, Totsuka-ku, Yokohama City, Kanagawa
Prefecture (Offices: Yokohama, Gifu, Takayama)
Number of Employees: Currently 1,000 (to increase by 300 after reassignment)
Sales: 17 billion yen in fiscal 1997; the sales target for the fiscal year
ending March 31, 2001, is 87 billion yen.
TOKAI TEC Co., Ltd.
Capital: 80 million yen (100% owned by Hitachi, Ltd.)
Establishment: May 1, 1979
Business: Manufacture of VCRs and video-related products; manufacture of
CD-ROMs, DVDs, and other optical products, etc. (related to the
Information Media Systems Group)
General Manager: Isao Fukushima
Address: 1410, Inada, Hitachinaka City, Ibaraki Prefecture (Offices: Tokai,
Yamagata)
Number of Employees: Currently 650 (to increase by 500 after reassignment)
Sales: 17 billion yen in fiscal 1997; the sales target for the fiscal year
ending March 31, 2001, is 27 billion yen.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global
electronics companies, with fiscal 1997 (ended March 31, 1998) consolidated sales of 8,417
billion yen ($63.8 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://www.hitachi.co.jp.
* At an exchange rate of 132 yen to the U.S. dollar.
|
