Hitachi Cable News vol.370
71st annual business report   From April 1, 2007, to March 31, 2008

This two-part serial feature over two-issues introduces the wires and cables, copper-products, and rubber-products businesses identified as core products businesses under the Plan "BEGIN", a medium-term management plan.* The first part of this serial feature in this issue provides an overview of the core products and introduces the major Group member companies and products in the wires and cables, and rubber products businesses.

*See the Special Report for an overview of the Plan "BEGIN" Midterm Management Plan.

Business outline and strategies

Lines of products based on technologies developed since the Company's founding

Wires and cables, copper products, and rubber products are products with long histories that in some cases date back to the roots of Hitachi Cable. The Company's history can be traced back to 1918, when Hitachi, Ltd. began production of magnet wires and copper products. From its spin-off from Hitachi, Ltd. in October 1956 to the present day, Hitachi Cable's core products have contributed to industrial development and to improvements in the social-infrastructure.

In the area of power-supplies, Hitachi Cable has provided products that include magnet wires used in generators and transformers, and high-voltage, high-capacity power cables. In telecommunications, in addition to its metallic telecommunications cables and landline optical-fiber cables, Hitachi Cable in the early 1990s began development and production of optical submarine cables for use in developing a global information-telecommunications infrastructure. In the area of heavy industry, the Company provides a wide range of products such as cables for use in railway rolling stock and those for use in industrial robots and machine tools, as well as various wires and cables for construction use.

At the same time, Hitachi Cable has developed a lineup of products based on its expertise in resin materials used as cable coatings and insulation, including industrial rubber products such as various rubber sheets and escalator handrails, as well as automotive brake hoses. Also, it is active in the copper-products business as well, utilizing its technologies for the mass production, processing, and alloying of copper-used as a conductor in wires and cables-to produce products such as copper tubes, copper strips, and copper products for electrical use.

Profit-generation strategies based on Plan “BEGIN”

In order to generate steady profits from its core products, Hitachi Cable has made progress in enhancing its business structure through efforts including reorganizing Group member companies and establishing joint ventures with other companies in similar industries from Japan and around the world.

In the area of reorganization of Group member companies, production of low-voltage power cables for construction use has been consolidated in Tonichi Kyosan Cable, Ltd., production of magnet wires in Hitachi Magnet Wire Corp., and production of industrial rubber products in Tohoku Rubber Co., Ltd. with regard to sales companies, in addition to welcoming strong exclusive dealers to the Hitachi Cable Group by investing in them, the Group also has worked to improve efficiency through efforts such as regional consolidation of these dealers with existing sales companies, to strengthen the competitive abilities of the Group.

In the area of joint ventures with other companies in similar industries, the Group is working to maximize synergies by establishing J-Power Systems Corp. in the high-voltage power cable business. It also plans to engage in joint ventures for optical-fiber cables and sales of wires and cables for the construction and power-sales industries, among other business areas.

Through these measures, these current core businesses will continue to form key pillars that ensure steady profits for the Hitachi Cable Group.