Hitachi Cable News vol.370
71st annual business report From April 1, 2007, to March 31, 2008
Recent Hitachi Cable Group topics
Aggressive mergers and acquisitions (M&A) toward expanding lines of business
Under its midterm management plan, the Hitachi Cable Group has steadily strengthened its management foundations by promoting structural innovations across its business areas. Based on the results of these efforts, the Group is aggressively pursuing M&A to supplement its current businesses with products, technologies, trading areas, and scales it lacks, thereby expanding the Group's future lines of business.
* The following figures for market share represent Hitachi Cable estimates.
Acquisition of COF business for LCD use
The Hitachi Cable Group has acquired the COF business for LCD use from Casio Micronics Co., Ltd., which began operating on June 1, 2008, as Hitachi Cable Film Device, Ltd.
This acquisition makes the Group's COF operations among the largest in the industry. The Group expects factors like increasing production volumes and synergies in technologies, sales, and raw materials purchases to enhance its future COF operations. The Group is also targeting the industry's leading ranks in its overall TAB business, drawing on the business resources gained through this acquisition to expand its memory TAB operations.
Hitachi Cable to acquire stock of
European medical cables manufacturer
In July 2008, Hitachi Cable plans to acquire the stock of Astral Meditech GmbH, an Austrian manufacturer of probe cables for use in ultrasonic diagnostic equipment, making the latter a subsidiary to be renamed Hitachi Cable Austria GmbH.
Already highly regarded in areas including technological and design capabilities, this new subsidiary will serve as an important development and manufacturing facility for the Hitachi Cable Group in Europe. The Group intends to leverage this acquisition to expand sales of probe cables for use in ultrasonic diagnostic equipment, with the ultimate goal of achieving the world's leading market share (more than 40%) during fiscal 2011.
Acquisition of automotive brake-hose business
In February 2008, Hitachi Cable acquired the automotive brake-hose operations of a US company that manufactures automotive hoses, establishing a new company, Hitachi Cable Florida, Inc., based on this business.
This acquisition will enable the Group to significantly expand transaction volumes with the Big Three US automakers in the North American market. Through this acquisition, the Group expects to achieve the world's leading market share in the automotive brake-hose market (market share exceeding 20%).
Hitachi Cable acquires stock of manufacturer of rubber rollers for use in office automation equipment
In April 2008, Hitachi Cable acquired the stock of Sosey Co., Ltd., a manufacturer of rubber rollers used in office automation equipment, making the latter a subsidiary.
Sosey offers strengths in the rubber rollers used in the developing process in copying machines and printers (the components that print text and images onto paper). By putting itself in a prime position to capture demand growth for these rubber rollers in accordance with the advancements in office automation equipment color technologies, the Hitachi Cable Group is working to expand its rubber-roller business.
High-brightness red LED chip developed with approximately five times the lighting efficiency of existing products
Hitachi Cable has developed a High-brightness red LED chip based on a new structure, achieved by installing a metal reflector inside the LED chip. This new structure reduces optical absorption losses and achieves lighting efficiency of 65 lumens/watt, levels some five times the lighting efficiency of existing products.
Since the color of this newly developed LED chip is clearly visible outdoors even under sunlight conditions, it will make large-scale outdoor display devices more vivid and visible. The technology will also enable a wide range of new designs for automotive rear combination lamps. Other factors driving market growth in this area include the potential application of this LED chip in LCD-panel backlights, an application existing LED chips are unsuited to due to their poor lighting efficiency.
J-Power Systems Corp. establishes joint-venture company in high-voltage power cable business with local investors in India
In January 2008, J-Power Systems Corp., itself a joint venture between Hitachi Cable and Sumitomo Electric Industries, Ltd., established a joint venture with Finolex Cables Limited. of India. The joint venture has been named Finolex J-Power Systems Private Limited.
Today, as the nation's economy grows, India faces pressing needs to make infrastructure improvements, including a reservoir of demand for high-voltage power cables. The goal of establishing this new company is to meet this demand.
The new company plans to buy land and construct plant buildings incorporating state-of-the-art facilities such as vertical continuous vulcanizers (VCVs), and intends to launch operations at the start of 2010.
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Signing ceremony for joint-venture agreement held in December 2007. At right: Then-President Shimojima of J-Power Systems Corp. At left: President Chhabria of Finolex Cables Limited. |
Hitachi Cable assessed highly in homepage rankings
Hitachi Cable's homepage ranked 45th among 3,988 contestants in fiscal 2007 homepage content ranking of all listed firms, a listing organized by Nikko Investor Relations Co., Ltd. For the fourth consecutive year, Hitachi Cable also won the prize for the best nonferrous metals company in the 2007 Internet investor-relations (IR) ranking tabulated by Daiwa Investor Relations Co. Ltd.Hitachi Cable was named among the best 402 companies for Internet IR sites in another listing compiled by Daiwa Investor Relations. By building and maintaining a clear, easily navigable website, Hitachi Cable plans to continue its practice of disclosing information in a timely and easily accessible manner.
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