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TOKYO, Japan, August 22, 2016 – Hitachi High Technologies Corporation (TOKYO: 8036, Hitachi High-Tech) announced today that its wholly owned subsidiary Hitachi High-Technologies do Brasil Ltda. (Hitachi High-Tech Brasil) and Brazilian mold steel sales company Alltech Steel do Brasil Ltda. (Alltech Steel) concluded an agreement on August 5, 2016, under which Hitachi High-Tech Brasil is to acquire all of the issued shares of Alltech Steel on October 3, 2016. The deal is intended to strengthen Hitachi High-Tech Brasil’s mold steel business in Brazil.
The Hitachi High-Tech Group has formulated a Mid-term Management Strategy running from FY2016 to FY2018 in order to implement concrete strategies and measures based on its business portfolio strategy, and thereby accelerate further growth toward 2020. In the advanced industrial products business, the business vision is to “become a business organizer of Full Value Chain as a product, for manufacturers" and it is aggressively making business investments targeting emerging markets, among other fields.
Brazil is a major production area for European and US automakers, who seek to raise the local procurement efficiency of parts and so forth. Meanwhile, many of the molds used in the production of automotive parts are still imported from outside Brazil.
To meet this increase in demand for local manufacture of molds, the Hitachi High-Tech Group started a business for selling mold steel – the raw material for making molds – in Brazil in 2011. This business imports and sells mold steel from a Japanese-affiliated specialty steel maker.
Now, Hitachi High-Tech Brasil is to acquire of all of the shares of Alltech Steel to further strengthen the mold steel sales business in Brazil, adding Alltech Steel’s sales network to its own, which it has developed over the years, thereby increasing its market presence.
In addition, going beyond the previous scope of mold steel sales, Hitachi High-Tech Brasil will meet the needs of mold-steel sales customers – moldmakers – by launching packaged services that cover one of the steps of the mold-making process up to heat treatment*. Hitachi High-Tech Brasil and the Japanese-affiliated specialty steel manufacturer will cooperate to provide technical guidance and quality management to local partner heat treatment companies, thereby contributing to the production of durable, high-quality molds.
Furthermore, Hitachi High-Tech Brasil is also examining expansion into peripheral businesses, such as mold tooling equipment, and will aim to enhance customer satisfaction as a “total solutions provider of molding production solutions."
Hitachi High-Tech Brasil will engage proactively in the mold steel sales business in Brazil and nurture it into a core business for advanced industrial products business. The Hitachi High-Tech Group will continue to aim to “become the Global Top in high-tech solutions," and respond swiftly to the needs of customers and markets, working from the customer’s perspective as a fast-moving creator of cutting-edge businesses.
|Name||Alltech Steel do Brasil Ltda.|
|Location||Garuva, Santa Catarina, Brazil|
|Representative||Jean Francisco Cardoso|
|Business||Sales of mold steel in Brazil|
|No. of employees||14|
|Paid-in capital||500,000 reais|
|Name||Hitachi High-Technologies do Brasil Ltda.|
|Location||São Paulo, Brazil|
|Business||Sales, imports, and exports of electrical and electronic products, industrial equipment, telecommunications equipment, machinery, industrial materials and other components|
|No. of employees||10|
|Paid-in capital||3,250,000 reais|
|Shareholding ratio||Hitachi High-Technologies Corporation 100%|
Hitachi High-Technologies Corporation, headquartered in Tokyo, Japan, is engaged in activities in a broad range of fields, including Science & Medical Systems, Electronic Device Systems, Industrial Systems, and Advanced Industrial Products.
The company's consolidated sales for FY2015 were approx. ¥629 billion [USD6 billion].
For further information, visit https://www.hitachi-hightech.com/global/
Aiko Matsumoto, Shota Sano
CSR & Corporate Communications Dept., CSR Div.,
Hitachi High-Technologies Corporation