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11 January 1996

Hitachi, Ltd. established in January 1996 Hitachi Elevator (Guangzhou) Co., Ltd. manufacturing inverter-control type elevators, and Hitachi Escalator (Guangzhou) Co., Ltd. manufacturing escalators in Guangzhou city, Canton province, together with Guangzhou Elevator Industry Co. (Guangzhou city, Canton province), with which Hitachi, Ltd. has had a technical agreement since 1982 to meet the increasing demand for elevators and escalators in China. Hitachi, Ltd. also established Guangzhou Guangri Elevator Co., Ltd. manufacturing relay-control type elevators, which will start production in April 1996.

China's economy has been growing annually at around 10% in recent years, and the elevator market is expected to top 25,000 units in 1996. Especially, demand for elevators in Southern China, which accounts for about 25% of demand in China, is expected to increase rapidly since many skyscrapers are due to be built mainly in Guangzhou city.
Hitachi, Ltd. established Shanghai Yungtay Engineering Co., Ltd. in June 1995, which manufactures, markets, installs and maintains inverter-control type elevators, in addition to the two companies Beijing Hitachi Elevator Service Co., Ltd. and Hainan Hitachi Elevator Co., Ltd.

The new three joint venture companies have been established in Canton city to strengthen the elevator and escalator business in Southern China and to build up a total organization, from manufacturing many different models of elevators and escalators, up to sales, installation and maintenance.

Hitachi Elevator (Guangzhou) Co., Ltd. plans to manufacture 1,600 units of inverter-control type elevators annually, and is expected to expand production capacity to 3,000 units by the year 2000.

Hitachi Escalator (Guangzhou) Co. Ltd. has started with an escalator production capacity of 150 units annually, and is expected to expand production capacity to 500 units by the year 2000.

Guangzhou Guangri Elevator Co., Ltd. plans to manufacture 1,000 units of relay-control type elevators annually and to expand production capacity to 2,000 units by the year 2000.

Annual production capacity in China is thus planned to be 6,500 units (elevators: 6.000 units, escalators: 500 units) including 1,000 units by Shanghai Yhen Dhi Electric Machinery, Ltd. Production capacity will be further expanded to meet market demand in future, with Hitachi aiming to capture 20% of the market in China.

The sales, installation and maintenance of the products manufactured by the above-mentioned three companies are all handled by Hitachi Elevator (Guangzhou) Co., Ltd.

OUTLINE OF THE NEW COMPANIES

Hitachi Elevator (Guangzhou) Co., Ltd. (abbreviation: HELG)

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Location:                Canton province, China 

Established:             January 1996

Capital:                 US$20,000,00 (Capital ratio: Hitachi Group 55%, 

                         Guangzhou Elevator Industry Co. 45%)

Scope of business:       Production of inverter-control type elevators, 

                         and sales, installation and maintenance of 

                         elevators and escalators 

Production plan:         Initially 1,600 units/year (3,000 units/year by 

                         the year 2000) 

Employee plan:           Initially 1,000 employees (1,800 employees by 

                         the year 2000) 

     

Hitachi Escalator (Guangzhou) Co., Ltd. (abbreviation: HESG)






Location:                Canton province, China 

Established:             January 1996

Capital:                 US$20,000,00 (Capital ratio: Hitachi Group 55%,

                         Guangzhou Elevator Industry Co. 45%)

Scope of business:       Production of escalators and elevator parts 

Production plan:         Initially 150 units/year (500 units/year by the 

                         year 2000) 

Employee plan:           Initially 300 employees (550 employees by the 

                         year 2000)

     

Guangzhou Guangri Elevator Co., Ltd. (abbreviation: GELC)






Location:                Canton province, China

Established:             February 1992 (Production start: April 1996) 

Capital:                 US$20,000,00 (Capital ratio: Hitachi Group 45%, 

                         Guangzhou Elevator Industry Co. 51%, Dhi Shan 

                         Chin Economic Development Inc. 4%)

Scope of business:       Production of relay-type elevators and parts 

Production plan:         Initially 1,000 units/year (2,000 units/year by 

                         the year 2000) 

Employee plan:           Initially 500 employees (650 employees by the 

                         year 2000)


OUTLINE OF JOINT VENTURE COUNTERPART


Guangzhou Elevator Industry Co.


 



Location:               Canton province, China

Established:            July 1982

Capital:                US$12,000,00 (Capital ratio: Hitachi Group 45%, 

                        Guangzhou Elevator Industry Co. 51%, Dhi Shan 

                        Chin Economic Development Inc. 4%)

Scope of business:      Production, sales, installation and maintenance 

                        of elevators and escalators

Number of employees: 1,970