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Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.
November 25, 2014
Aiming to Achieve a Highly Reliable and Efficient Domestic Production Structure
to Strengthen Global Product Competitiveness
Tokyo, Japan, November 25, 2014 --- Hitachi, Ltd. (TSE:6501, “Hitachi”) today announced that it has decided to reorganize domestic manufacturing bases and strengthen the production structure for the Information & Telecommunication Systems Business.
Hitachi currently has three manufacturing bases in Japan for IT platform related products, in Odawara City and Hadano City, both in Kanagawa Prefecture, and in Koriyama City, in Fukushima Prefecture. With the upcoming reorganization, by the end of September 2016, all of the manufacturing functions at the Odawara base, which manufactures mainly storage products, will be integrated into the Hadano base, which manufactures servers and network products.
Furthermore, Hitachi-Omron Terminal Solutions, Corp., a subsidiary in the ATM and terminal business that currently shares domestic manufacturing functions between its Asahi Headquarters (Owari-Asahi City, Aichi Prefecture) and Toyokawa Works (Toyokawa City, Aichi Prefecture), will integrate those domestic manufacturing functions into the Asahi Headquarters by the end of March 2016.
Hitachi is currently in the process of building a platform business structure that can respond quickly to changes in the market environment and the diversification of customer needs. As part of these activities, in October 2013, the domestic manufacturing functions for IT platform related products, which had been handled by Hitachi, Ltd. and two group companies, were integrated into Hitachi Information & Telecommunication Manufacturing, Ltd.
By integrating the domestic manufacturing bases for Information & Telecommunication Systems related products, Hitachi will further promote the standardization of technologies and facilities and the integration of core technologies and expertise, increase productivity and investment efficiency, and strengthen cost competitiveness on a global scale. These domestic manufacturing bases will also serve as “Mother Plants” to support quality control, human resource training, and the startup of production at overseas bases, as Hitachi continues to build high-quality, high reliability production structures and promote the expansion of business throughout the world.
Meanwhile, processes involving the installation of electronic components on PCBA for ATM and terminal business related products, which up to now have been handled by Hitachi-Omron Terminal Solutions, will be transferred to Hitachi Information & Telecommunication Manufacturing in order to strengthen cost competitiveness by sharing expertise in PCBA and promoting the standardization of components.
As part of efforts to further increase competitiveness, Hitachi-Omron Terminal Solutions will strengthen product and service capabilities, and at the same time promote the optimization of global production structures in countries and regions demonstrating an increasing demand for “cash recycling” ATMs (which combine cash acceptor and dispenser functions, and also enable to reuse the deposited banknotes for withdrawal transactions)
In addition to the above activities, Hitachi has been strengthening its ability to respond to a wide range of customer needs based on a market-driven approach. For example, in October 2014, part of the Information Systems business at the Infrastructure Systems Company (an in-house company) was integrated into the Information & Telecommunication Systems Company, and in April 2015, the system solution business for the social infrastructure, financial, and government & public sectors in Hitachi Solutions, Ltd. will be integrated into the Information & Telecommunication Systems Company, one of Hitachi's in-house companies.
Hitachi will continue to build business structures aimed at strengthening business competitiveness, in order to further expand the Social Innovation Business.