OREANDA-NEWS.  February 14, 2012. Hitachi, Ltd. (NYSE: HIT / TSE: 6501, "Hitachi") and the Group's regional HQ in China, Hitachi (China) Co., Ltd., ("Hitachi (China)") today announced the formulation of the China Business Strategy 2015. The strategy aims to achieve consolidated revenues of 160 billion yuan (approximately 1,920 billion yen*) in fiscal 2015, expanding by a factor of about 1.6 from the fiscal 2010 level. The expansion will be driven by further localization of operations and realization of Group synergies.

China has been enjoying remarkable economic growth with an average annual GDP growth rate of over 10Ѓ“ for the five years from 2006 through 2010. The growth is expected to continue at close to 10Ѓ“ for fiscal 2011 and 2012 also. As the country continues to develop, construction of social infrastructure will accelerate, not only in the coastal regions, but also over a wider area including the northeast and the interior. Continued expansion in Chinese internal demand for electric power, transportation, water and IT infrastructure is widely expected.

Under its 12th Five-Year Plan announced in March 2011, China aims not only to achieve economic growth driven mainly by urbanization and expanding internal demand, but also to realize an environmental society, such as a low-carbon society with a green economy. The plan also lays out expectations for innovation in nurturing advanced industries and adding higher value.

Hitachi currently employs over 60,000 people at over 140 group companies in China. The Group's diverse businesses in China include ATMs, thermal power systems, railway systems, elevators and escalators, construction machinery, high functional materials and components, and medical equipment. In fiscal 2004 Hitachi's consolidated revenues from sales to China were 597.5 billion yen, rising to 1,188 billion yen in fiscal 2010. Today, China is the biggest overseas market for the Hitachi Group, accounting for 13Ѓ“ of the group's consolidated revenues.

As the Chinese market continues its remarkable growth, Hitachi aims to contribute to the development of Chinese society in line with the 12th Five-Year Plan. To this end, the Group has formulated the China Business Strategy 2015 based on further localization of operations and realization of Group synergies. Specific steps to deepen the level of localization include strengthening partnerships with local governments and companies in the energy saving and environment fields, and expanding local production in power systems and railway systems. The Group will also foster greater internal synergies by drawing on its combined strength to bolster its management base in China by rolling out the Hitachi Smart Transformation Project, a global project for overhauling cost structures. Another step to increase synergies will involve expanding the current 12 sales bases to 16, and holding combined Group exhibitions 2 or 3 times per year in each of the 12 main cities as a way of increasing Hitachi's presence in China.

By implementing these measures throughout the Group, Hitachi aims to expand the Social Innovation Business as the main means of contributing to the development of Chinese society. In doing so, Hitachi plans to grow its consolidated revenues in China to 160 billion yuan (approximately 1,920 billion yen*) by fiscal 2015, 1.6 times the level in fiscal 2010.

Details of the China Business Strategy 2015 are as follows.
* Calculated based on a rate of 1 yuan=12 yen