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Hitachi Group to Integrate Infrastructure Biz in April

Posted on: Monday, 24 October 2005, 18:00 CDT

Tokyo, Oct. 24 (Jiji Press)--Hitachi Ltd. and three other Hitachi group companies said Monday that they will integrate their social and industrial infrastructure businesses on April 1, 2006 to boost competitiveness.

For the business integration, Hitachi Plant Engineering and Construction Co. will merge with Hitachi Kiden Kogyo Ltd., which makes water treatment equipment, and Hitachi Industries Co. in charge of large-scale industrial machinery, they said.

Hitachi will spin off its operations on machinery-related systems and industrial systems for integration with Hitachi Plant.

The new integrated company projects an operating profit of 11.4 billion on sales of 350 billion yen for the first fiscal year to March 2007. It aims for an operating profit of 20 billion yen on sales of 400 billion yen in fiscal 2010.

By integrating Hitachi group corporate resources, the new company intends to cut costs and beef up research and development and marketing activities.

The merger ratio of Hitachi Plant will be set at one to 0.93 with Hitachi Kiden and at one to 13.40 with Hitachi Industries, the companies said.

For Hitachi's business split, Hitachi Plant plans to allocate 11.59 million own shares to the parent.END

Source: Jiji Press English News Service

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