Hitachi Metals, Hitachi Cable to merge
TOKYO (Kyodo) -- Hitachi Metals Ltd. and Hitachi Cable Ltd. have decided to merge in April to boost competitiveness against foreign rivals, company sources said Tuesday.
The merger by the two subsidiaries of Hitachi Ltd., both listed on the First Section of the Tokyo Stock Exchange, will create a highly functional material maker with about 1 trillion yen in annual revenue, based on their annual sales reported for the year that ended March 31.
Hitachi Metals has expertise in development of neodymium magnets essential to motors for electric vehicles and industrial machinery, while Hitachi Cable produces electric and optical cables, for which demand from emerging economies is rising. The companies lag behind in overseas operations.
As domestic demand for social infrastructure businesses has peaked in Japan, Hitachi is looking to expand its overseas operations in the field.
Hitachi has traditionally allowed its group firms relative independence but is now promoting restructuring among its group companies in an effort to compete against international giants such as General Electric Co. and Siemens A.G.