Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.
November 11, 2013
Hitachi, Ltd.
Mitsubishi Corporation
Hitachi becomes Japan Space Imaging shareholder; to jointly operate company with Mitsubishi Corporation
Tokyo, November 11, 2013 - Hitachi, Ltd. (Hitachi: TSE/6501) and Mitsubishi Corporation (MC: TSE/8058) today announced that MC agreed to sell, and Hitachi agreed to purchase, 51% of the issued shares of Japan Space Imaging Corporation (JSI), a subsidiary of MC, and that Hitachi and MC will jointly operate the satellite imagery business through JSI from November 15, 2013.
U.S. government policy on the commercialization of military space technology in the 1990s served as the starting point for the satellite imagery market, and the usage of imagery collected by commercially-owned satellites is now expanding in a wide range of fields. Due to advantages provided by features that allow it to capture a wider area than airborne imagery in a single shot, satellite imagery is now playing an increasingly important role in crisis management, including national security and disaster response situations, as well as in construction and infrastructure management. In addition, due to advancements in data processing technology, satellite imagery is expected to be employed in various civilian and commercial applications, such as web applications that combine mapping and road data, as well as in social infrastructure and web contents.
Focused primarily on the public sector, in particular, Japan's Ministry of Defense, Hitachi has been providing satellite imagery services since 1997, taking advantage of satellite imagery distribution rights acquired by its subsidiary, Hitachi Solutions, Ltd, from US-based DigitalGlobe, Inc.
In 1998, MC established JSI to take advantage of distribution rights acquired from GeoEye, Inc., and through JSI, has been promoting the sales of satellite imagery in a wide range of fields in the commercial sector, such as to game makers and the media, in addition to the public sector.
Triggered by the merger of GeoEye and DigitalGlobe in January 2013, a review of the structure of the satellite imagery businesses, at both Hitachi and MC, led the two companies to agree to collaborate through JSI, with Hitachi's participation implemented by means of the acquisition of 51% of JSI shares issued from MC.
Through this transfer of JSI stocks, Hitachi and MC will take full advantage of MC's experience in the business and JSI's sales network, combined with Hitachi's technological expertise, in their efforts to further expand the market.
JSI has been in the satellite imagery business since its establishment by MC in 1998.
| (1) Company Name | Japan Space Imaging Corporation |
|---|---|
| (2) Address | 8-1, Yaesu 2-Chome, Chuo-Ku, Tokyo 104-0028 JAPAN |
| (3) Representative | Yoichi Kamiyama, President |
| (4) Established on | May 11, 1998 |
| (5) Capital | 490,000,000 yen |
| (6) Major Business | Satellite imagery collection, production, sales and delivery |
| (7) Shareholders | Hitachi Ltd 51%, Mitsubishi Corporation 43.9%, NEC Corporation 5.1% (as of November 15, 2013) |
Hitachi, Ltd. (Hitachi:TSE/6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 326,000 employees worldwide. The company's consolidated revenues for fiscal 2012 (ended March 31, 2013) totaled 9,041 billion yen ($96.1 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional material & components, automotive systems and others.
For more information, please visit the company's website at http://www.hitachi.com.
Mitsubishi Corporation (MC:TSE/8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including environmental and infrastructure, industrial finance, energy, metals, machinery, chemicals, and foods businesses.
MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.
With more than 200 Offices & Subsidiaries in approximately 90 countries worldwide and a network of over 600 group companies, MC employs a multinational workforce of over 65,000 people.
For more information, please visit the company's website at http://www.mitsubishicorp.com/.
