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Hitachi

Hitachi High-Technologies GLOBAL

December 6, 2013

Manufacturing Site in Suzhou City, China Relocated to New Building, and Operations Started

Boosting Production Capacity and Production Efficiency to Expand Business Scale

Hitachi High-Technologies Corporation (TOKYO: 8036, Hitachi High-Tech) has built a new factory in Suzhou City, the People's Republic of China (China) and has completed the relocation of Hitachi Instrument (Suzhou), Ltd. (CEO: Osamu Ohno; Suzhou City, Jiangsu Province, China; HIS), a 100%-owned manufacturing subsidiary of Hitachi High-Tech, to the new building. The construction of the new building was completed on December 6, 2013 with operations starting on the same day.

To meet expanding demand in China and elsewhere around the world, the new HIS factory will increase unit assembly for clinical analyzers and electron microscopes, which were previously produced at the former factory, and ramp up the production capacity of consumables for clinical analyzers and other items. At the same time, the new HIS factory will strive to boost production efficiency. Through these measures, the new HIS factory will fulfill its role as an overseas manufacturing site eyeing further business expansion.

While working to bolster its cost competitiveness by increasing the overseas production ratio, the Hitachi High-Tech Group is pressing ahead with global business expansion with a view to building an integrated production system overseas. To this end, in October 2012 the Group commenced construction of the new HIS factory with the aim of enhancing production capacity.

The newly built and relocated HIS factory is situated in an industrial park within Suzhou City, about 10 km away from the former HIS factory. The new factory has three floors above ground and a total floor space of approximately 20,000 m2 (215,000 sq. ft.), making the facility around 2.5 times larger than the former HIS factory. The new factory has a highly functional layout, consisting of workspaces for the unit assembly of clinical analyzers and electron microscopes, workspaces for manufacturing special cleaning fluids and reagents, a space and warehouse for taking delivery and inspecting components, and workspaces for machining. The Group aims to make the new HIS factory an efficient production site that can handle production increases going forward. Mindful of this goal, the Group will work to enhance production efficiency by simplifying logistics traffic lines within the factory, in an effort to reduce lead times by around 20%. The Group will also press ahead mainly with improving quality and cutting costs by expanding the new factory's machining workspaces.

Looking ahead, the Group will also consider broadening the range of production items in order to expand the size of the business, while striving to enhance manufacturing technology with the intention of building an integrated production system in China.

The Hitachi High-Tech Group will take the opportunity of the completion of the new HIS factory to strengthen its overseas production sites, as it works to globally expand manufacturing with the aim of expanding business going forward.

Outline of New HIS Factory

Location 137, No.137 Fangzhong Street, Suzhou Industrial park, Suzhou 215025, P.R.C.
Structure 3 floors above ground
Total floor space Approx. 20,000 m2 (215,000 sq. ft.)
Start of operation December 2013
Total investment Approx. ¥1.2 billion

Overview of HIS

Established 1997
Representative Osamu Ohno, CEO
Paid-in capital US$13 million
Employees 215 (as of November 2013)
Production items Units for clinical analyzers and electron microscopes, consumables for clinical analyzers

Media Inquiries

Reiko Takeuchi, Aiko Matsumoto,
CSR & Corporate Communications Dept.,
CSR Div.,
Hitachi High-Technologies Corporation
Tel: +81-3-3504-7760

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