OREANDA-NEWS. Hitachi, Ltd., Hitachi Medical Corporation and Hitachi Aloka Medical, Ltd. announced that Hitachi Medical and Hitachi Aloka Medical will establish a new manufacturing subsidiary by combining the manufacturing divisions of them and that Hitachi will conduct absorption-type mergers of Hitachi Medical and Hitachi Aloka Medical (the "Merger") on April 1, 2016 (hereinafter the establishment of the manufacturing subsidiary and the Merger collectively will be referred to as the "Reorganization").

The Reorganization aims to strengthen Hitachi's healthcare business and accelerate growth of this business. Certain information has been omitted in this release as the Merger is an absorption-type merger in which Hitachi will integrate wholly-owned subsidiaries.

In the healthcare field today, there are difficult challenges in developed countries, such as aging populations and an increase in chronic diseases. At the same time, emerging countries are facing challenges such as improving the level of medical care in line with their economic growth. Under these situations, the market size for healthcare businesses - diagnostics & clinical, testing & reagents, and informatics (services and platforms) - is expected to grow over 5% annually.

Hitachi considers that its healthcare business will grow significantly by providing new solutions that combine its technologies and expertise with IT in addition to its existing businesses, such as medical imaging systems and cancer therapy systems. Hitachi has positioned its healthcare business as an important part of its Social Innovation Business.

To date, Hitachi has taken several steps to expand its healthcare business, including the conversion of Aloka Co., Ltd. (currently Hitachi Aloka Medical) into a wholly-owned subsidiary of Hitachi Medical in March 2011, and the conversion of Hitachi Medical into a wholly-owned subsidiary of Hitachi in March 2014. Moreover, in April 2014, Hitachi established the "Healthcare Group" and the Healthcare Company, an in-house company.

In April 2015, Hitachi Medical and Hitachi Aloka Medical integrated their functions into the Healthcare Company. Through these moves, Hitachi has strengthened its organization and its businesses, and worked to create a streamlined management structure.

The Reorganization will streamline the overlapping business sites in Japan and overseas of Hitachi, Hitachi Medical and Hitachi Aloka Medical, and we will work toward full management integration. Moreover, we will enhance our competitiveness by realizing high-quality and low-cost production and integrating the manufacturing technology and know-how of Hitachi Medical and Hitachi Aloka Medical.

Hitachi will strengthen and create solutions for the healthcare field utilizing the three core domains of diagnostics & clinical, testing & reagents, and informatics. Working closely with Hitachi's in-house companies, such as the Information & Telecommunication Systems Company, the Hitachi Group will strengthen its capacity to provide healthcare services. In so doing, the Hitachi Group will further accelerate its growth strategies and focus on care cycle and medical innovation aimed at achieving quality improvement and streamlining the delivery of healthcare.