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Friday, September 28, 2001
Hitachi to spin off its consumer electronics business


Hitachi has announced its plan to spin off its Consumer Products Group in April 2002 as a 100%-owned subsidiary. Integrating two manufacturing subsidiaries, Hitachi Tochigi Technology and Hitachi Taga Electronics, the new company will "focus solely on consumer electronics from development to manufacturing and sales" .

Details of the new company such as its name and capital are undecided at this point. The new company will engage itself in the development, manufacturing and sales of white goods but only in the sales of digital audio-visual equipment.

Kunio Sehata, Group President & CEO of Hitachi's Consumer Products Group, says that efforts will be made to speed up development through empowerment to the actual worksites and to accelerate global expansion not only in terms of manufacturing but also in development. The idea is to challenge the intensifying competition in the marketplace, and shifting development/manufacturing overseas will advance especially with products where price is the key for better sales results. Says Sehata, "Businesses to remain in Japan will be products to be developed anew such as high added-value products and network household appliances."


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