Hitachi Cable Eyes Establishment of New Large Offshore Works in Mid Term

Hitachi Cable eyes establishment of a new integrated works at overseas during the next medium term. Mitsuo Imai, president of Hitachi Cable, explained directions of the next mid-term management plan to Japan Metal Bulletin. Hitachi Cable plans to manufacture several different items at one site for cross-sectoral utilization of infrastructures, technologies and human resources, those which lead to cost reduction and high competitiveness. The firm started to examine concrete areas, time schedules and items for the works. Mr. Imai said the firm targets to raise the offshore sales ratio to 50% in future from current 30%, especially for non-Japanese customers.

Hitachi Cable is now formulating a new 3-year management plan starting in April 2010. Mr. Imai described the firm may not be able to complete establishment of an offshore large-scale works and 50% overseas sales ratio within fiscal 2010-2012 but these targets are recognized as Hitachi Cable’s mid- and long-term directions.

Hitachi Cable aims to follow the market growth related to environment and infrastructure as well as reinforcement of overseas business under the next 3-year plan, explained Mr. Imai. At the same time, he referred to the possibility to withdraw from low-profitable businesses by “focus & deep.”

Hitachi Cable estimates its consolidated revenue at 380 billion yen and operating profit at 1 billion yen for fiscal 2009 ending in March 2010.