Hitachi

Last updated
Hitachi, Ltd.
Native name
株式会社日立製作所
Romanized name
Kabushiki gaisha Hitachi Seisaku-sho
Public KK
Traded as TYO: 6501
TOPIX Core 30 Component
Industry Conglomerate
Founded1920;99 years ago (1920)
Hitachi, Ibaraki, Japan
Founder Namihei Odaira
Headquarters,
Japan
Area served
Worldwide
Key people
Hiroaki Nakanishi
(Chairman)
Toshiaki Higashihara
(President and CEO)
Products
Services
RevenueIncrease2.svg ¥9.480 trillion (2019) [1]
Decrease2.svg¥516.5 billion (2019) [1]
Decrease2.svg¥321.0 billion (2019) [1]
Total assets Decrease2.svg¥9.626 trillion (2019) [1]
Total equity Increase2.svg¥3.262 trillion (2019) [1]
Number of employees
307,275 (2019) [2]
Website www.hitachi.com

Hitachi, Ltd.(株式会社日立製作所,Kabushiki-gaisha Hitachi Seisaku-sho, lit. "Stock Company Hitachi Manufacturing Plant") (Japanese pronunciation:  [çiꜜtatɕi] ) is a Japanese multinational conglomerate company headquartered in Chiyoda, Tokyo, Japan. It is the parent company of the Hitachi Group (Hitachi Gurūpu) and forms part of the DKB Group of companies. Hitachi is a highly diversified company that operates eleven business segments: Information & Telecommunication Systems, Social Infrastructure, High Functional Materials & Components, Financial Services, Power Systems, Electronic Systems & Equipment, Automotive Systems, Railway & Urban Systems, Digital Media & Consumer Products, Construction Machinery and Other Components & Systems. [3]

Multinational corporation large corporation doing business in many countries

A multinational corporation (MNC) or worldwide enterprise is a corporate organization that owns or controls production of goods or services in at least one country other than its home country. Black's Law Dictionary suggests that a company or group should be considered a multinational corporation if it derives 25% or more of its revenue from out-of-home-country operations. A multinational corporation can also be referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation, or a stateless corporation. There are subtle but real differences between these three labels, as well as multinational corporation and worldwide enterprise.

Conglomerate (company) two or more corporations that fall under one corporate group

A conglomerate is a combination of multiple business entities operating in entirely different industries under one corporate group, usually involving a parent company and many subsidiaries. Often, a conglomerate is a multi-industry company. Conglomerates are often large and multinational.

Chiyoda, Tokyo Special ward in Kantō, Japan

Chiyoda is a special ward located in central Tokyo, Japan. It is known as Chiyoda City in English.

Contents

Hitachi is listed on the Tokyo Stock Exchange and is a constituent of the Nikkei 225 and TOPIX indices. It is ranked 38th in the 2012 Fortune Global 500 and 129th in the 2012 Forbes Global 2000. [4]

Tokyo Stock Exchange stock exchange located in Tokyo, Japan

The Tokyo Stock Exchange, which is called Tōshō (東証) or TSE/TYO for short, is a stock exchange located in Tokyo, Japan. It is the fourth largest stock exchange in the world by aggregate market capitalization of its listed companies, and largest in Asia. It had 2,292 listed companies with a combined market capitalization of US$4.09 trillion as of April 2015.

Nikkei 225 Japanese stock market index

The Nikkei 225 (日経平均株価), more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average, is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the Nihon Keizai Shinbun newspaper since 1950. It is a price-weighted index, operating in the Japanese Yen (JP¥), and its components are reviewed once a year. The Nikkei measures the performance of 225 large, publicly owned companies in Japan from a wide array of industry sectors.

Tokyo Stock Price Index, commonly known as TOPIX, along with the Nikkei 225, is an important stock market index for the Tokyo Stock Exchange (TSE) in Japan, tracking all domestic companies of the exchange's First Section. It is calculated and published by the TSE. As of 1 February 2011, there are 1,669 companies listed on the First Section of the TSE, and the market value for the index was ¥197.4 trillion.

History

Former Hitachi logo (1968-1992) Hitachi old logo2.gif
Former Hitachi logo (1968–1992)

Hitachi was founded in 1910 by electrical engineer Namihei Odaira in Ibaraki Prefecture. [5] [6] [7] The company's first product was Japan's first 4-kilowatt (5 hp) induction motor, initially developed for use in copper mining. [8] [ citation needed ]

Namihei Odaira Japanese businessman

Namihei Odaira was a Japanese entrepreneur and philanthropist who founded Hitachi.

Ibaraki Prefecture Prefecture of Japan

Ibaraki Prefecture is a prefecture of Japan located in the Kantō region of Honshu. Ibaraki Prefecture has a population of 2,871,199 and has a geographic area of 6,097.19 km². Ibaraki Prefecture borders Fukushima Prefecture to the north, Tochigi Prefecture to the northwest, Saitama Prefecture to the southwest, and Chiba Prefecture to the south.

Induction motor AC electric motor in which the electric current in the rotor needed to produce torque is obtained by electromagnetic induction from the magnetic field of the stator winding

An induction motor or asynchronous motor is an AC electric motor in which the electric current in the rotor needed to produce torque is obtained by electromagnetic induction from the magnetic field of the stator winding. An induction motor can therefore be made without electrical connections to the rotor. An induction motor's rotor can be either wound type or squirrel-cage type.

The company began as an in-house venture of Fusanosuke Kuhara's mining company in Hitachi, Ibaraki. Odaira moved headquarters to Tokyo in 1918. [9] Odaira coined the company's toponymic name by superimposing two kanji characters: hi meaning “sun” and tachi meaning “rise.” [ citation needed ]

Fusanosuke Kuhara Japanese businessman, politician

Fusanosuke Kuhara was an entrepreneur, politician and cabinet minister in the pre-war Empire of Japan.

Hitachi, Ibaraki City in Kantō, Japan

Hitachi is a city located in Ibaraki Prefecture, Japan. As of September 2015, the city had an estimated population of 183,148 and a population density of 811 persons per km2. Its total area is 225.71 km2. Hitachi is well known in the world for its brand name of electric products, including power plants and appliances, of the Hitachi company founded in the town in 1910 by Namihei Odaira with considerable properties as its factories in the city.

<i>Kanji</i> adopted logographic Chinese characters used in the modern Japanese writing system

Kanji are the adopted logographic Chinese characters that are used in the Japanese writing system. They are used alongside the Japanese syllabic scripts hiragana and katakana. The Japanese term kanji for the Chinese characters literally means "Han characters". It is written with the same characters in the Chinese language to refer to the character writing system, hanzi (漢字).

World War II had a significant impact on the company with many of its factories being destroyed by Allied bombing raids, and discord after the war. Founder Odaira was removed from the company.[ citation needed ] Hitachi's reconstruction efforts after the war were hindered by a labor strike in 1950. The company saw an increase in business during the Korean War due to defense contracts offered by the American military.[ citation needed ] Meanwhile, Hitachi went public in 1949.

Hitachi America, Ltd. was established in 1959. [10] Hitachi Europe, Ltd. was established in 1982. [11]

Former Hitachi logo (1992-2001) Hitachi logo.svg
Former Hitachi logo (1992-2001)

In March 2011, Hitachi agreed to sell its hard disk drive subsidiary, HGST, to Western Digital (WD) for a combination of cash and shares worth US$4.3 billion. [12] Due to concerns of a duopoly of WD and Seagate Technology by the EU Commission and the Federal Trade Commission, Hitachi's 3.5" HDD division was sold to Toshiba. The transaction was completed in March 2012. [13]

In January 2012, Hitachi announced it would stop producing televisions in Japan. [14] In September 2012, Hitachi announced that it had invented a long-term data solution out of quartz glass that was capable of preserving information for millions of years. [15]

In October 2012, Hitachi agreed to acquire the United Kingdom-based nuclear energy company Horizon Nuclear Power, which plans to construct up to six nuclear power plants in the UK, from E.ON and RWE for £700 million. [16] [17]

In November 2012, Hitachi and Mitsubishi Heavy Industries agreed to merge their thermal power generation businesses into a joint venture to be owned 65% by Mitsubishi Heavy Industries and 35% by Hitachi. [18] [19] The joint venture began operations in February 2014. [20]

In October 2015, Hitachi completed a deal with Johnson Controls to form a joint-venture that would takeover Hitachi's HVAC business. Hitachi maintained a 40% stake of the resulting company, the Johnson Controls-Hitachi Air Conditioning. [21]

In May 2016, Hitachi announced it was investing $2.8 billion into its IoT interests. [22] In February 2017, Hitachi and Honda announced a partnership to develop, produce and sell motors for electric vehicles. [23]

On March 14, 2018, Zoomdata announced its partnership with Hitachi INS Software to help develop big data analytics market in Japan. [24] In December 2018, Hitachi Ltd. announced it would take over ABB Ltd.'s power grid division for $6.4 billion. [25]

Products and services

Aircraft

(Pre-war)

Aircraft engines

Automotive systems

Hitachi Automotive Systems Americas Offices, Farmington Hills, Michigan Hitachi Automotive Systems Americas Offices Farmington Hills Michigan.JPG
Hitachi Automotive Systems Americas Offices, Farmington Hills, Michigan

Components and devices

Construction machinery

A Hitachi hydraulic excavator in use Hitachi ZX490LCH-6.jpg
A Hitachi hydraulic excavator in use

Defense systems

Digital media and consumer products

2008 Hitachi air conditioning outdoor unit 2008 Hitachi aircon outdoor unit RAM-5DNS.jpg
2008 Hitachi air conditioning outdoor unit
The Magic Wand vibrating massager Hitachi-magic-wand.jpg
The Magic Wand vibrating massager

Note: A new product from Hitachi called Memory glass was to be introduced in 2015. It is a high density information storage medium utilizing laser etched/readable Fused quartz. [29]

Electronic systems and equipment

Financial services

Advanced materials

Information and telecommunication systems

The Hitachi factory in Toyokawa, Japan Hitachi, Ltd. (Toyokawa Factory).jpg
The Hitachi factory in Toyokawa, Japan

Power systems

Following the Fukushima Daiichi nuclear disaster in 2011 and the extended temporary closure of most Japanese nuclear plants, Hitachi's nuclear business became unprofitable and in 2016 Hitachi CEO Toshiaki Higashihara argued Japan should consider a merger of the various competing nuclear businesses. [30] Hitachi is taking for 2016 an estimated ¥65 billion write-off in value of a SILEX technology laser uranium enrichment joint venture with General Electric. [31] [32] In 2019 Hitachi suspended the ABWR development by its British subsidiary Horizon Nuclear Power as it did not provide an adequate "economic rationality as a private enterprise" to proceed. [33]

Social infrastructure and industrial systems

Hitachi's G1TOWER, currently the world's tallest elevator research tower, located at Hitachinaka, Ibaraki G1TOWER Hitachi.jpg
Hitachi's G1TOWER, currently the world's tallest elevator research tower, located at Hitachinaka, Ibaraki

Other

Subsidiaries and divisions

Current

Hitachi Communication Technologies America

Hitachi Communication Technologies America provides communications products and services for the telecommunications, cable TV, utility, enterprise, industrial and other markets. [35]

Hitachi Consulting

Hitachi Consulting is an international management and technology consulting firm with headquarters in Dallas, Texas. It was founded in 2000 and currently employs approximately 6,500 people across the United States, Japan, the United Kingdom, the Netherlands, India, Spain, Portugal, Germany, China, Brazil and Vietnam.

Hitachi Vantara

Hitachi Vantara is a wholly owned subsidiary of Hitachi which provides hardware, software and services to help companies manage their digital data. Its flagship products are the Virtual Storage Platform (for enterprise storage), Hitachi Unified Storage VM for large sized companies, Hitachi Unified Storage for small and mid-sized companies, Hitachi Content Platform (archiving and cloud architecture), Hitachi Command Suite (for storage management), Hitachi TrueCopy and Hitachi Universal Replicator (for remote replication), and the Hitachi NAS Platform.

Since September 19, 2017, Hitachi Data Systems (HDS) has become part of Hitachi Vantara, a new company that unifies the operations of Pentaho, Hitachi Data Systems and Hitachi Insight Group. The company name "Hitachi Data Systems" (HDS) and its logo is no longer used in the market.

Hitachi Electronics

Hitachi manufactures many types of electronic products including TVs, Camcorders, Projectors and Recording Media under its own brand name.

Hitachi Defense Systems

Hitachi provides various defense related/derived products & services.

Hitachi Metal

Among other things, Hitachi Metals supplies materials for aircraft engines and fuselage components (e.g. landing gear), along with finished components for same and other aerospace applications. It also provides materials, components and tools for the automotive and electronics industries.

Hitachi Koki

Hitachi Koki manufactures many types of tools including chainsaws, drills, woodworking power tools. Some are branded Koki Tanaka. On March 1, 2016, Hitachi Koki acquired German power tools manufacturer Metabo from Chequers Capital.

Hitachi Plant Technologies

Hitachi Plant Technologies, Ltd., along with its subsidiaries, engages in the design, development, manufacture, sale, servicing, and execution of social and industrial infrastructure machinery, mechatronics, air-conditioning systems, industrial plants, and energy plant equipment in Asia and internationally.

Hitachi Rail

A British Rail Class 395 train produced by Hitachi Unit 395008 at Ebbsfleet International.JPG
A British Rail Class 395 train produced by Hitachi

Hitachi Rail is the rolling stock manufacturing division of Hitachi. It and Mitsubishi Heavy Industries agreed to cooperate in the field of international intra-city railway systems in 2010. [36]

Hitachi markets a general-purpose train known as the "A-train", which uses double-skin, friction-stir-welded aluminium body construction. The A-train concept can be customised to form different types of trains, ranging from high-capacity commuter and metro trains (as in the automated 3000 series train for the Nanakuma Line of the Fukuoka City Subway) to limited express (as in the E257 series jointly produced with Tokyu Corporation) and high-speed trains (as in the Class 395 trains for Southeastern in the UK). [37] They have made such trains for domestic and international operators alike. Among its most significant orders was the winning tender for the UK Department for Transport's Intercity Express Programme in June 2008. [38]

Hitachi's many products include the designing and manufacturing of many Shinkansen models, including the N700 Series Shinkansen, [37] which has been exported as the THSR 700T for Taiwan High Speed Rail.

The company also markets a driverless metro system developed by Hitachi Rail Italy, pioneered on the Copenhagen Metro, and straddle beam monorail technology, known as the Hitachi Monorail, which form the basis of the trains operating on the world's longest monorail system, currently part of the Chongqing Rail Transit network.

On February 24, 2015, Hitachi agreed to purchase the Italian rolling stock manufacturer AnsaldoBreda and acquire Finmeccanica's stake in Ansaldo STS, the railway signaling division of Finmeccanica [39] The purchase was completed later that year, [40] at which point the company was renamed as Hitachi Rail Italy. Since then, Hitachi has obtained a majority stake in Ansaldo STS. [41]

Hitachi Solutions America

Hitachi Solutions America is a consulting firm and systems integrator focusing primarily on Microsoft Dynamics. The firm utilizes AX and CRM from the Dynamics family to provide customers with a broad base of solutions. The company is international, with subsidiaries residing in the United Kingdom, Canada, Philippines, Thailand, Japan and India. Hitachi Solutions America acquired Ignify – another leading Microsoft Dynamics Solution providers in December 2015. [42] Hitachi Solutions has about 2000 Microsoft Dynamics consultants worldwide after the acquisition of Ignify.

Hitachi Works

Hitachi Works is the oldest member of the Hitachi Group and consists of three factories: Kaigan Works, Yamate Works, and Rinkai Works. Yamate Works, the oldest of the three factories, was founded in 1910 by Namihei Odaira as an electrical equipment repair and manufacturing facility. This facility was named Hitachi, after the Hitachi Mine near Hitachi, Ibaraki, and is regarded as the ancestral home of Hitachi, Ltd.

Many management trainees intern at Hitachi Works before being permanently assigned to other Hitachi divisions. Senior management personnel are often participants in rotations at Hitachi Works for a few years as their career develops towards eventual head office stature. As a result, many of the senior managers of Hitachi Ltd have passed through Hitachi Works.

Spin-off entities from Hitachi Works include Hitachi Cable (1956) and Hitachi Canadian Industries (1988).

R & D Group

  • Technology Strategy Office
  • Central Research Laboratory
  • Hitachi Research Laboratory – Includes Mechanical Engineering Research Laboratory (Robotics)
  • Yokohama Research Laboratory
  • Design Division
  • Overseas research centers
  • In-house/Business division
  • Development center
  • Development & Design section
  • Intellectual Property Group [subgroup] [43]

Former divisions

Hitachi Global Storage Technologies

Hitachi Global Storage Technologies (Hitachi GST) manufactures computer hard drives. There are 3 main ranges: Hitachi Travelstar, Hitachi Deskstar, and Hitachi Ultrastar.

On March 7, 2011 Hitachi Global Storage Technologies was purchased by Western Digital Corporation for $3.5 billion in cash and $750 million in Western Digital common stock. [44]

Hitachi Printing Systems

Hitachi Printing Systems was established in 1980 and was acquired by Ricoh in 2004, becoming Ricoh Printing Systems, Ltd.

TELK (Transformers and Electricals Kerala Ltd.)

Hitachi had a joint venture with Kerala public sector company TELK from 1963 to 1989 for the production of electrical equipment. In collaboration with Hitachi, TELK was the first company to manufacture 400kV transformers in India. TELK transformers are well known for their quality and are in great demand for the Indian power system.

Corporate social responsibility

In August 2011, it was announced that Hitachi would donate an electron microscope to each of five universities in Indonesia (the University of North Sumatra in Medan, the Indonesian Christian University in Jakarta, Padjadjaran University in Bandung, General Soedirman University in Purwokerto and Muhammadiyah University in Malang). [45]

See also

Hitachi Group(ja:日立グループ)

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