TOKYO, Japan, June 19, 2001 --- Hitachi, Ltd. (TSE: 6501) announced
today that its Digital Media Group has established a new company,
Hitachi Fujian Digital Media Company Ltd. (HFDM), in China's Fujian
Province. According to Tsugio Momose, President & CEO of the Digital
Media Group, HFDM was set up by spinning off the projection TV design,
production marketing and service divisions of Fujian Hitachi Television
Company Limited, a manufacturer and vendor of TVs located in Fujian
Province, and is aimed at strengthening Hitachi's response to expanding
demand for projection TVs in China. Plans are for HFDM to commence
operations in August. The Hitachi Group has a 51% share in the new
company, Fujian Electronics & Information Group, co-owner of Fujian
Hitachi Television, 47%, and Kobe-based Toei Shoko Ltd., 2%. Yoshiteru
Isago of Hitachi is the president. Fujian Hitachi Television will
transfer its color TV design, marketing and service divisions to the
new company and thereafter specialize in production of tube-type color
TVs as a supplier for the new company.
Chinese demand for projection TVs is expected to rise at a steep annual
rate of 35%, from around 200 thousand units in 2000 to the vicinity
of 750 thousand units in 2005. Rising personal income and better housing,
plus the emergence of new products like DVDs, are driving up Chinese
demand for high-definition, large-screen TVs, particularly among those
in the middle and upper income brackets. Activity in the market is
also increasing owing to the introduction of new products by overseas
consumer product manufacturers, and the start of projection TV production
by domestic TV manufacturers.
Hitachi is a world-class developer and producer of the optical engines
(lens systems) that are the key component of projection TVs marketed
in Japan and the United States. Backed by a strong reputation for
excellent image quality, Hitachi's optical engines are consistent
contenders for top market share in the projection TV sector of the
big-screen dominated US market. In 1998, Hitachi acted on its prediction
that Chinese demand for projection TVs was ready to take off by moving
into production at Fujian-Hitachi. It has since ramped up output to
15 thousand units annually.
Thanks to its location in Economic and Technological Development Zone,
Fuzhou, Fujian, HFDM will be able to take advantage of special tax
incentives to consolidate its business base. The sales target for
the company is 20 billion Japanese yen (150 thousand units) annually
by 2005. The total investment in HFDM will amount to 4 billion yen.
Fujian Hitachi Television's transformation into a specialized OEM
producer of tube-type color TVs following the establishment of the
new company is expected to enable that company to boost profitability
by focusing on a narrower product lineup. Another aspect of the transformation
is consolidation of all Fujian Hitachi production under the Hitachi
brand, rather under both the Fujian Hitachi brand and the Hitachi
brand as in the past.
About Hitachi
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's
leading global electronics companies, with fiscal 2000 (ended March
31, 2001) consolidated sales of 8,417 billion yen ($67.9 billion*)
. The company manufactures and markets a wide range of products, including
computers, semiconductors, consumer products and power and industrial
equipment. For more information on Hitachi, Ltd., please visit Hitachi's
Web site at http://global.hitachi.com
* At an exchange rate of 124 yen to the dollar.
About HFDM
Company Name |
: |
Hitachi Fujian Digital Media Company
Ltd. |
Established |
: |
June 19, 2001 |
President |
: |
Yoshiteru Isago |
Location |
: |
Fuzhou City, Fujian Province, China |
Ownership |
: |
Hitachi Group: 51% (Hitachi, Ltd.: 41%,
Hitachi (China) , Ltd.: 10%),
Fujian Electronics & Information Group: 47%, Toei Shoko Ltd.:
2% |
Business |
: |
Design, production and marketing of
projection TVs and other digital media products |
Capital |
: |
100 million yuan (1.4 billion yen) |
Sales Target |
: |
20 billion yen (2005), 150 thousand
units (market share: 20%) |
Investment |
: |
4 billion yen |
No. of Employees |
: |
450 (estimated as of December 2001) |
About Fujian Hitachi Television (As of March 2001)
Company Name |
: |
Fujian Hitachi Television Company Limited |
President |
: |
Lin Jin Ting |
Established |
: |
1981 |
Location |
: |
Fuzhou City, Fujian Province, China |
Ownership |
: |
Fujian Electronics & Information
Group: 50%, Hitachi, Ltd.: 48%, Toei Shoko Ltd.: 2% |
Business |
: |
Design, production and marketing of
color TVs |
Capital |
: |
84.6 million yuan (1,184 million yen) |
Sales |
: |
9 billion yen (Year 2000) |
No. of Employees |
: |
1,250 |
|