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Hitachi to Expand Presence in China
Japanese electronic giant Hitachi plans to more than quadruple its business in China by 2005, Hitachi President Etsuhiko Shoyama said in Beijing yesterday.
"More Hitachi products will be made in China, and the local purchasing will increase by folds," Etsuhiko predicted.
The corporate leader said the company hopes for US$4.5 billion in revenue in 2005, up from US$1.2 million last year. Hitachi plants in China aim to produce US$4 billion in goods in 2005, up from last year's US$520 million.
"Supported by large domestic demand, China will soon become the world's biggest market," he said.
China is now Hitachi's fourth biggest overseas market after the United States, Europe and non-China Asia.
Hitachi, the first Japanese company to invest in China, has plunged US$200 million into the country since 1981.
Now China is playing a more important role in Hitachi's development blueprint. So the company is planning to ramp up investment, too, he said. No dollar amount was given, though.
Hitachi has directly invested in 26 companies in China, including factories producing televisions, elevators, air conditioners, vehicle-related products, power factory equipment and washing machines. These companies employ 12,000 workers.
Hitachi is transitioning from traditional electronic products to information technology, Etsuhiko said.
The company plans to focus on three areas in China, information telecoms, electronic equipment and digitalized home appliances.
Telecoms equipment, computer-related products and services and home appliances that link to the Internet are among Hitachi's new products.
Hitachi may also set up manufacturing bases for computer hardware and software, Etsuhiko said.
Hitachi recently started making mobile phones for the Chinese market. It also recently set up a joint venture with a Chinese partner, Qingdao-based home appliances maker Hisense, to produce code division multiple access mobile phones.
And a joint lab was opened yesterday at Tsinghua University to perform research and development on the next generation of mobile telecoms.
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