News Releases


Hitachi to Merge Hitachi Plant Technologies to Strengthen Social Innovation Business

Tokyo, February 1, 2013 --- Hitachi, Ltd. (TSE: 6501, “Hitachi”) today announced that it has decided to conduct an absorption-type merger of wholly owned subsidiary Hitachi Plant Technologies, Ltd. on April 1, 2013.

This merger is being conducted to promote the integrated management of sales, research and development, and procurement in Hitachi’s infrastructure systems business, as well as to consolidate expertise and technologies, and strengthen Hitachi’s ability to make proposals and respond quickly to diversifying market needs. Furthermore, by strengthening cooperation with other in-house companies, including the Information & Telecommunication Systems Company, the Power Systems Company and with other Hitachi Group Companies, Hitachi hopes to increase the added value it provides.

At present, in emerging economies, demand is increasing for the construction of new social infrastructure, as well as for improving the efficiency of existing social infrastructure, such as power, water and railway systems. This is particularly important in India and Southeast Asian countries due to the rapid economic growth in these regions. At the same time, developed countries need to construct next-generation social infrastructure based on information technology (IT) to create low-carbon, sustainable societies, and to address aging social infrastructure.

Hitachi operates its Social Innovation Business globally. Hitachi’s infrastructure systems business is spearheaded by the Infrastructure Systems Company, which was formed in April 2012 through the reorganization of the Information & Control Systems Company and the Industrial & Social Infrastructure Systems Company (both in-house companies) and Hitachi Plant Technologies, a wholly owned subsidiary.

Hitachi Plant Technologies was formed in April 2006 through the merger of Hitachi Plant Engineering & Construction Co., Ltd., Hitachi Kiden Kogyo, Ltd., Hitachi Industries Co., Ltd. and part of Hitachi’s Industrial Systems Group. Since then, Hitachi Plant Technologies has endeavored to increase its market share and strengthen its earnings on a global basis through key businesses such as social infrastructure systems, including large pumps, compressors and water treatment systems, and industrial systems, including chemical and pharmaceutical plants. In April 2010, it became a wholly owned subsidiary of Hitachi with the goal of strengthening the Social Innovation Business.

The merger announced today is aimed at further, global expansion of Hitachi’s Social Innovation Business. The merger will create a more robust management platform in the infrastructure systems business and improve Hitachi’s ability to propose solutions.

Certain disclosures and details have been omitted as this merger is an absorption-type merger in which Hitachi will integrate a wholly owned subsidiary.

1. Purpose of the Merger

The integration of Hitachi’s Infrastructure Systems Group and Hitachi Plant Technologies will enable the prompt provision of total solutions, extending from the design, development, construction and maintenance of conventional social infrastructure systems to the provision of expertise relating to the management of business assets and more efficient systems operations. Furthermore, through greater integrated management of the Social Innovation Business and the plant total solutions business, which Hitachi and Hitachi Plant Technologies are respectively developing globally, Hitachi aims to strengthen its solutions proposal capabilities. This will also enhance Hitachi’s ability to respond to diversifying needs such as those for advanced social infrastructure systems fused with IT, for which demand is expected to increase going forward.

2. Outline of the Merger

(1) Schedule

Decision to merge February 1, 2013

Conclusion of Merger Agreement February 1, 2013

Scheduled Merger Date (Effective Date) April 1, 2013

* The merger is deemed to be a simplified absorption-type merger for Hitachi pursuant to Article 796, Paragraph 3 of the Companies Act of Japan. Furthermore, it is deemed to be a short-form absorption-type merger for Hitachi Plant Technologies pursuant to Article 784, Paragraph 1 of the Companies Act of Japan. Therefore, Hitachi and Hitachi Plant Technologies do not plan to convene shareholders’ meetings to obtain approval for the merger agreement.

(2) Merger Method

As the surviving company, Hitachi will absorb Hitachi Plant Technologies, which will be dissolved thereafter.

(3) Details of Allotments Related to the Merger

There will be no allotment of shares or other assets as a result of this merger, because the merger is with a wholly owned subsidiary of Hitachi.

(4) Handling of Stock Acquisition Rights and Bonds with Stock Acquisition Rights of the Company to Be Dissolved

Hitachi Plant Technologies has not issued any stock acquisition rights or bonds with stock acquisition rights.

3. Profiles of the Parties of the Merger

(1) Name

Hitachi, Ltd. (Surviving company)

Hitachi Plant Technologies, Ltd. (Company to be dissolved)

(2) Business

Development, manufacture and sales of products and provision of services across 10 segments: Information & Telecommunication Systems, Power Systems, Social Infrastructure & Industrial Systems, Electronic Systems & Equipment, Construction Machinery, High Functional Materials & Components, Automotive Systems, Digital Media & Consumer Products, Financial Services, Others (Consolidated)

Development, design, manufacture, sale, service and construction of social infrastructure systems, industrial systems, air conditioning systems, and energy systems, etc.

(3) Established

February 1, 1920 (Founded 1910)

April 1, 2006 (Founded 1929)

(4) Head office

6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo

5-2, Higashi-Ikebukuro 4-chome, Toshima-ku, Tokyo

(5) Representative

Hiroaki Nakanishi, President

Toshiaki Higashihara

President and Representative Director

(6) Paid-in capital (As of September 30, 2012)

439,262 million yen

12,000 million yen

(7) Total number of issued shares (As of September 30, 2012)



(8) Fiscal year-end



(9) Major shareholders and shareholding (As of September 30, 2012)

The Master Trust Bank of Japan, Ltd. (Trust Account) 6.86%

Japan Trustee Services Bank, Ltd. (Trust Account) 6.42%


Hitachi Employees’ Shareholding Association 2.63%

State Street Bank and Trust Company 505224 2.44%

Hitachi, Ltd. 100%

(10) Business Results and Financial Status for the Most Recent Fiscal Year(Millions of yen unless otherwise specified)

Net assets

2,773,995 (Consolidated)

90,180 (Consolidated)

Total assets

9,418,526 (Consolidated)

295,838 (Consolidated)

Net assets per share (yen)*1

382.26 (Consolidated)

453.19 (Consolidated)


9,665,883 (Consolidated)

334,339 (Consolidated)

Operating income

412,280 (Consolidated)

9,888 (Consolidated)

Ordinary income*2

557,730 (Consolidated)

9,473 (Consolidated)

Net income

347,179 (Consolidated)

3,494 (Consolidated)

Net income per share (yen)

76.81 (Consolidated)

17.93 (Consolidated)

4. Status of Hitachi After the Merger

There will be no change in the company name, business, head office location, representative, paid-in capital or fiscal year of Hitachi due to the merger.

5. Future Outlook

The merger will have minimal impact on the consolidated operating results of Hitachi because it is a merger with a wholly owned subsidiary.


Consolidated Business Forecasts for the Year Ending March 31, 2013 (announced on October 30, 2012) and Consolidated Operating Results for the Previous Fiscal Year (Millions of yen)



Operating income

Income before income taxes

Net income attributable to Hitachi, Ltd. stockholders

Consolidated Business Forecasts for Fiscal 2012 (Year Ending March 31, 2013)





Consolidated Operating Results for Fiscal 2011 (Year ended March 31, 2012)