On October 1, the three companies Hitachi, Mitsubishi Electric Corporation and Mitsubishi Heavy Industries established Hitachi Mitsubishi Hydro Corporation, a new company integrating their business in hydroelectric power systems.
In the global market for hydropower facilities, the top three companies Voith Hydro (Germany), Alstom (France) and Andritz (Austria) collectively hold the majority share. Hitachi Mitsubishi Hydro is going to fight for a larger share by making full use of the technical capabilities and supply networks built up by Hitachi and the Mitsubishi Group so far.
The new company is capitalized at 2 billion yen, and rests on equal outlays by Hitachi and the Mitsubishi Group. It is to start out with an annual turnover of about 20 billion yen, and is aiming for sales of about 30 billion in 2014, thanks to the synergistic effects induced by its three parents. Overseas markets are supposed to occupy about 30% of these sales.
Hitachi Mitsubishi Hydro intends to site manufacturing plants in newly emerging economies by fiscal 2015, and is looking at candidates including India and China. It is considering investments on the order of 10 billion yen to this end.
