Hitachi : Share Transfer of Hitachi Compressor Ltd
December 24, 2020 at 06:35 am EST
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Hitachi Global Life Solutions, Inc. (President, Jun Taniguchi) has concluded an agreement to transfer all outstanding shares of Hitachi Compressor (Thailand), Ltd., a wholly owned subsidiary in Thailand that manufactures compressors for refrigerators to Midea Electric Trading (Singapore) Co. Pte, Ltd., a subsidiary of China's Midea Group and a trading company for home appliances sales.
By joining the Midea Group, which is one of the world's leading producers of refrigerator compressors, Hitachi Compressor (Thailand), Ltd. will strengthen its competitiveness by improving its procurement capabilities and expanding its supply chain. In addition, the Midea Group will utilize Hitachi Compressor (Thailand), Ltd. as an important production base in the ASEAN region for future business expansion.
Hitachi Global Life Solutions will improve the profitability of the refrigerator business by switching to external procurement, such as outsourcing the production of refrigerator compressors, which are produced by Hitachi Compressor (Thailand), Ltd., to Midea Electric Trading (Singapore) Co. Pte, Ltd., which will strengthen competitiveness. In addition, we will continue to invest in the growth of high value-added products such as connected appliances and to strengthen our life solution business. We will also develop innovative refrigerators and solutions in the area of foodstuffs that meet the diversifying needs of customers and contribute to the improvement of the consumer's QoL.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
HITACHI, LTD. 
