Hitachi to Sell Some Stake in Hitachi Construction Machinery
October 23, 2020 at 05:19 pm
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Hitachi, Ltd. (TSE:6501) plans to sell part of its stake in subsidiary Hitachi Construction Machinery Co., Ltd. (TSE:6305), informed sources said October 23, 2020. Investment funds and others in Japan and abroad are showing interest in the subsidiary, the sources said. The move is part of an effort by the Japanese machinery maker to reorganize its publicly traded subsidiaries.
Hitachi is also considering selling Hitachi Metals Ltd. as part of the effort. The three companies are all listed on the first section of the Tokyo Stock Exchange. Currently, Hitachi owns some 51% of Hitachi Construction Machinery and is considering selling about half of its shares, the sources said.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).