Japan – Hitachi to Strengthen Business Structure to Accelerate Growth through Digital, Green, and Innovation

Hitachi, Ltd. (TSE:6501) today announced that as part of efforts to achieve the goals of the Mid-term Management Plan 2024, it will strengthen the business structure, effective April 1, 2023, in order to accelerate the growth of the Social Innovation Business, with a focus on digital, green, and innovation.

1. Strengthening the Digital Business Structure

To accelerate the digital transformation for both customers and the Hitachi Group, Hitachi will establish the Digital Engineering Business Unit (BU) by integrating consulting, design, and digital engineering capabilities worldwide, including GlobalLogic Inc. Jun Taniguchi, the CEO of Hitachi Digital LLC, will hold a concurrent position as CEO of the BU, and it will resolve issues for customers and society and create new value by accelerating Lumada’s cycle of value co-creation along with the Hitachi Group’s various business divisions, further expanding the Social Innovation Business. Shashank Samant, Chairman of GlobalLogic, and Gajen Kandiah, CEO of Hitachi Vantara LLC, will hold respective concurrent positions as Executive Chairman and President of Hitachi Digital, which leads digital strategies for the entire Hitachi Group. With the addition of these two leaders to CEO Taniguchi, Hitachi Digital will accelerate the growth of the digital businesses worldwide. The Services & Platforms BU will also be reorganized to form the Cloud Services Platforms BU. In the rapidly growing cloud business field, this BU will further strengthen data management and storage solutions, which are Hitachi Vantara’s strengths, and will strive to strengthen the competitiveness of the global cloud service and data management businesses, by leveraging expertise in mission-critical systems and IT platforms.

2. Expanding Green Business

Chief Sustainability Officer Lorena Dellagiovanna will be appointed Senior Vice President and Executive Officer to further accelerate sustainability for the Hitachi Group as a whole. Vice President and Executive Officer Tadashi Kume(1) will be appointed Executive General Manager of Global Environment Business Group, which will lead the green business, while Ayumu Morita will be appointed General Manager. Megumu Tsuda will be appointed General Manager of Internal Environment Initiatives Division, which will lead environmental activities within the Hitachi Group. Under leadership of Chief Sustainability Officer, they will contribute to promoting green strategies both inside and outside of the Hitachi Group.

In the Railway Systems Business, Giuseppe Marino(2), who drove the PMI following Hitachi’s acquisition of AnsaldoBreda S.p.A. & Ansaldo STS S.p.A. will be appointed CEO of the Railway Systems BU and will strive to make Hitachi a top global player in the railway systems business by acquiring Thales’ Ground Transportation Systems Business and promoting PMI. Andrew Barr, currently CEO of the BU, will be appointed Executive Officer in charge of Regional Strategies [EMEA] and President of Hitachi Europe Ltd., leading the regional strategies in EMEA including the green business. Meanwhile, Executive Vice President and Executive Officer Alistair Dormer will lead the Green Energy & Mobility Sector, which is at the core of the green business, further
expanding Hitachi’s contributions to the environment through business on a global scale.

3. Accelerating the Creation and Promotion of Innovations

Itaru Nishizawa will be appointed CTO, and General Manager of Research & Development Group, working alongside Masakatsu Mori, who will be appointed General Manager of Innovation Growth Strategy Division in leading the creation of innovations. Both have an extensive track record of research in the digital field, and will play a central role in supporting the future growth of the Hitachi Group by applying Web 3.0, the metaverse, and other cutting- edge technologies in the Lumada business and creating innovations in fields such as quantum computing, design cell, and hydrogen by backcasting from 2050.

Business Structure as of April 1, 2023

BU: Business Unit EVP: Executive Vice President SVP: Senior Vice President VP: Vice President
Hitachi sees Diversity, Equity and Inclusion (DEI) as sources of innovation and engines that drive global growth. It assigns diverse talents to positions where they are able to make use of their unique knowledge and experiences, and to fully demonstrate their capabilities. With Lorena Dellagiovanna and Giuseppe Marino being appointed Senior Vice President and Executive Officer, and Chie Mashima being appointed Vice President and Executive Officer, as of April 2023, there will be a total of six female and non-Japanese executive officers, a record number for Hitachi. By actively appointing diverse talent, Hitachi will strive for further growth on a global scale.

(1) Will be appointed Chief Quality Officer & Chief Manufacturing Strategy Officer
(2) Currently serves as CEO of Ansaldo Energia S.p.A., outside of the Hitachi Group

About Hitachi, Ltd.

Hitachi drives Social Innovation Business, creating a sustainable society with data and technology. We will solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products, under the business structure of Digital Systems & Services, Green Energy & Mobility, Connective Industries and Automotive Systems. Driven by green, digital, and innovation, we aim for growth through collaboration with our customers. The company’s consolidated revenues for fiscal year 2021 (ended March 31, 2022) totaled 10,264.6 billion yen ($84,136 million USD), with 853 consolidated subsidiaries and approximately 370,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.

Sectors: Cloud & Enterprise

Copyright ©2023 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Japan – MHI and EGAT ink MoU to Strengthen Cooperation on Clean Power Generation in Thailand

Mitsubishi Heavy Industries, Ltd. (MHI) and Thailand’s largest power producer Electricity Generating Authority of Thailand (EGAT) signed a Memorandum of Understanding (MoU) to study and exchange information relating to clean power generation, hydrogen, carbon capture, utilization and storage (CCUS) technologies in support of the nation’s goal of achieving carbon neutrality by 2050.

Thidade Eiamsai (Deputy Governor of Power Plant Development and Renewable Energy/EGAT) (2nd from left) and Ryo Takubo (President and Managing Director/Mitsubishi Heavy Industries (Thailand)) (3rd from left) at signing ceremony

Set to take place over the next three years, MHI, along with Mitsubishi Power, its power solutions brand, will exchange experiences and information on the specified areas with EGAT. This could also involve an exchange of engineers to share experiences and technical know-how on advancing cleaner power generation in Thailand.

Mr. Ryo Takubo, President and Managing Director of Mitsubishi Heavy Industries (Thailand), expressed his confidence in the partnership: “MHI Group has played an instrumental role in Thailand’s vibrant energy growth story for more than five decades. Looking ahead, we will continue to contribute our capabilities around world-class gas turbines, which are being developed to co-fire cleaner fuels like hydrogen and ammonia, and CCUS technologies that are critical to lowering emissions. It is an honor to partner with EGAT to bring together our learnings and deep experience to unlock more opportunities and accelerate Thailand’s decarbonization.”

Mr. Thidade Eiamsai, Deputy Governor of Power Plant Development and Renewable Energy, EGAT, reaffirmed the significance of the collaboration: “We’ve built a trusted relationship with Mitsubishi Power over the last few decades, and believe that this agreement will combine both our technological expertise and understanding of local needs to facilitate Thailand’s energy transition in accordance with the National Energy Plan. We are grateful for Mitsubishi Power’s collaboration and are excited to continue powering the energy sector in Thailand together.”

The agreement expands the longstanding partnership between MHI, Mitsubishi Power and EGAT. Mitsubishi Power started its operations in Thailand in 1968 with the construction of the Queen Sirikit Dam together with EGAT. Since then, Mitsubishi Power has supplied many of its industry-leading products and services to meet EGAT’s varied needs, contributing to significant energy projects across the country, including the South Bangkok Power Plant, Nam Phong Power Plant and Wang Noi Power Plant. In 2009, Mitsubishi Power and EGAT launched a joint venture EGAT Diamond Service (EDS) to deliver trusted gas turbine services and develop local engineering talent. Serving both domestic and international customers, EDS ensures reliable and efficient operations in the region’s path toward cleaner power generation.

With this partnership, MHI, Mitsubishi Power and EGAT aim to step up efforts to support Thailand’s goal of reducing greenhouse gas emissions by 40 per cent from the projected levels by 2030, carbon neutrality by 2050 and net zero emissions by 2065.

MHI and Mitsubishi Power have played a critical role in Thailand’s shift from coal to natural gas to support the gradual transition of the country towards net-zero emissions. Today, the total installed capacity of Mitsubishi Power’s track record including power plants under construction is over 25GW – well over 50% of the country’s current power generation capacity. Efforts include Southeast Asia’s first M701 JAC gas turbines, which commenced operation in Thailand as part of an order of eight turbines for a power plant in Chonburi Province to produce more reliable, stable and cleaner energy for the country.

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.

Copyright ©2022 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Volkswagen to strengthen regional development competence for autonomous driving in China through joint venture between CARIAD and Horizon Robotics


  • Partnership to help Volkswagen Group to speed up customization of automated driving solutions for the Chinese market
  • As part of the cooperation, CARIAD and Horizon Robotics intend to establish a joint venture in China, in which CARIAD will hold a majority stake of 60%
  • Volkswagen Management Board Member Ralf Brandstätter: “Teaming up with Horizon Robotics will allow Volkswagen to accelerate the development of automated driving as part of our NEW AUTO strategy and drive the repositioning of our China business.”
  • Volkswagen Group to invest in a cooperation with Horizon Robotics, a leading supplier of energy-efficient computing solutions for smart vehicles
  • Integration of numerous functions in one integrated chip is intended to increase stability and reduce energy consumption of entire automated systems, allowing for scalable ADAS and AD solutions with differentiating innovation
  • Horizon Robotics CEO Dr. Kai Yu: “As one of the leading companies to commercialize and mass produce computing solutions of autonomous driving in China, we will bring in our expertise to our partnership with CARIAD to develop next-generation technologies for smart vehicle users.”

The Volkswagen Group is strengthening its development competence “in China, for China” to accelerate the pace of innovation, promote technological localization and further strengthen its customer focus in this important market. A new partnership between its software company CARIAD and Horizon Robotics, one of the leading providers of computing solutions for smart vehicles in China, will accelerate the regional development of Advanced Driver Assistance System (ADAS) and Autonomous Driving (AD) systems for the Chinese market. As part of the cooperation, CARIAD and Horizon Robotics plan to also establish a joint venture, with CARIAD being majority shareholder. Volkswagen Group willoverall invest approximately EUR 2.4 billion in the cooperation with Horizon Robotics. The transaction is expected to be completed in the first half of 2023. Together CARIAD and Horizon Robotics plan to develop cutting-edge, highly optimized full stack ADAS/AD solutions for China to drive forward the integration of numerous functions on one chip, increasing the stability of the system, saving costs, and reducing energy consumption. The fully integrated software/hardware technology offers differentiation and provides scalable as well as cost efficient ADAS/AD solutions for the Group’s BEV (Battery Electric Vehicles) models in China. The closing of the transaction is subject to the final signing of transaction documents between the parties involved and customary government approval, as well as, in particular, the approval of merger control and foreign investment authorities.

“The partnership with Horizon Robotics is a central cornerstone of our strategy to realign and further strengthen our activities in our most important market worldwide. Localized technology development grants the region more autonomy to further expand its position in the dynamic automotive market. Cutting edge technology comprising the full software and hardware stack, which the new joint venture will develop, will enable us to tailor our products and services even faster and more consistently to the needs of our Chinese customers. Teaming up with Horizon Robotics will allow Volkswagen to accelerate the development of automated driving solutions as part of our NEW AUTO strategy and drive the repositioning of our China business,” said Ralf Brandstätter, Member of the Management Board of Volkswagen AG for China.

“As the global automotive software and technology company of Volkswagen Group, CARIAD is an important force in the Group’s transformation into a software-driven mobility provider. Through the joint venture with Horizon Robotics in China and further investment in autonomous driving technology, we are underlining our position in innovation and modernization in China’s automotive industry. Our goal is to create long- term value in China for the Group and our shareholders in line with expected market development”, said CARIAD CEO Dirk Hilgenberg.

“Horizon Robotics is committed to empowering smart vehicles through integrated computing solutions with the mission to make human life safer and better,” said Dr. Kai Yu, founder and CEO of Horizon Robotics, “As one of the leading companies to commercialize and mass produce computing solutions of autonomous driving in China, we will bring in our expertise to the partnership with CARIAD to develop

next-generation technologies for smart vehicle users. We believe our integrated software and hardware solutions will continue to position Horizon Robotics as a partner of choice for international auto makers in China.”

Smart, intelligent driving enabled by advanced ADAS/AD systems is the key technology of future mobility and an area with high potential for market growth, in which the speed of development is paramount. The partnership of CARIAD and Horizon Robotics foresees the formation of a joint venture, in which CARIAD shall hold a 60 percent stake. CARIAD and Horizon Robotics aim to accelerate the development and commercialization of software and hardware technologies in the automotive sector in China to make automated driving for Chinese customers a reality faster.


SCSK and NEC Strengthen Collaboration to Accelerate Customers’ DX and Business Growth

SCSK Corporation (TSE: 9719) and NEC Corporation (TSE: 6701) today announced that they will strengthen collaboration in the data center and network business to accelerate customers’ DX and grow their businesses. As part of this effort, the companies will establish SCSK NEC Data Center Management, Ltd., a joint venture in data center operations on April 1, 2022.

Background and purpose of establishing a new company

Due to the global COVID-19 pandemic and the frequent occurrence of natural disasters, there is a need for the utilization of secure and safe data centers to further raise awareness of business continuity, and to ensure the safety of sensitive information such as personal information. Furthermore, due to the shift to remote work and the acceleration of digital transformation (DX), there is a growing need for using richly functional and highly flexible cloud services.

SCSK and NEC will jointly operate a data center in Inzai City, Chiba Prefecture, Japan, scheduled for completion in April 2022, to accelerate DX for customers, and to attract ecosystem partners, including cloud providers. This will provide customers with significant benefits in terms of convenience and confidentiality in connecting to ecosystem partners when using jointly operated data centers.

Ecosystem partners will also install network connectivity points to jointly operated data centers in the future, giving both companies’ customers the opportunity to leverage the services of the ecosystem partners.

To realize these environments, both companies will jointly own and operate data centers and establish a data center joint operating company with the aim of creating and providing new services with the ecosystem partners.

Role of the new company

The new company will hold the property of a data center in Inzai City, scheduled for completion in April 2022, and will provide data center services and network services to SCSK and NEC. In addition, the new company aims to operate an environmentally friendly data center by using renewable energy, and both companies will contribute to the achievement of virtually zero greenhouse gas emissions.

Future development

SCSK and NEC will continue to attract ecosystem partners to realize a high level of convenience and confidentiality in an environment that combines customer-specific systems within data centers and various cloud services. Going forward, both companies will continue to support the acceleration of customers’ DX and business growth through collaboration in the data center and network business.

Profile of the new company

1. Company name: SCSK NEC Data Center Management, Ltd.
2. Business Activities: Provision of data center services and network services for SCSK and NEC from Inzai City, Chiba Prefecture, Japan
3. Date of Establishment: April 1, 2022
4. Representative: Hiroshi Ogasawara, Representative Director
5. Head Office: Toyosu, Koto-ku, Tokyo
6. Capital: 200 million yen (including capital reserve)
7. Ownership ratio: SCSK: 62.5% NEC: 37.5%
8. Number of employees: 10

About SCSK Corporation

SCSK provides a full lineup of services to support any area of IT solution required for businesses from consulting to system integration, verification services, IT infrastructure implementation, IT management, IT hardware and software sales, and BPO (business process outsourcing).
SCSK at new windowhttps://www.scsk.jp/index_en.html

About NEC Corporation

NEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of “Orchestrating a brighter world.” NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential. For more information, visit NEC at https://www.nec.com.

Topic: Press release summary

Japan – Hitachi to Strengthen Business Structure for Further Growth through Digital, Environment, and Innovation

Hitachi, Ltd. (TSE: 6501) today announced that as of April 1 2022 it will strengthen business structure in order to further evolve the Social Innovation Business and achieve growth with a focus on digital, environment and innovation in its next Mid-term Management Plan.

1. Accelerating Growth through Digital, Environmental, and Innovation

(1) Achieving Growth by Accelerating Digitalization
Hitachi will establish a structure, led by Hitachi Digital LLC(*1) based in North America, to create and implement global digital strategies that cut across the entire Hitachi Group, and to accelerate growth through digitalization. EVP Toshiaki Tokunaga, who will take charge of Digital Systems & Services sector, will serve as Chairman, and Jun Taniguchi (currently President of Hitachi Global Life Solutions, Inc.), who has been involved in promoting DX in the control platform business and the digitalization of the home appliance business, will be appointed CEO.

In addition, two leaders will join the management of Digital Systems & Services sector to strengthen structures to drive the global growth of the digital businesses. Shashank Samant, CEO of GlobalLogic, while leading co-creation and digital business by leveraging GlobalLogic’s digital engineering capabilities, will also serve as an Executive Advisor to EVP Tokunaga to support the development of the Hitachi Group’s overall digital business growth strategy. And Gajen Kandiah, CEO at Hitachi Vantara LLC, will undertake a concurrent position as Chief Digital Transformation Officer in charge of Digital Systems & Services business. He will apply insights of the cloud and data applications, which are the core strengths of Hitachi Vantara, to expand the Hitachi Group’s service business, and to transform the Group as a whole into a world-class digital solution provider.

Through these initiatives, Hitachi will expand Lumada business and accelerate the growth through DX globally.

(2) Achieving Growth by Accelerating Environmental Strategies
In order for the Hitachi Group to grow and contribute to sustainability as part of efforts to achieve a decarbonized society and a circular economy, VP Lorena Dellagiovanna will be appointed to the newly created position of Chief Sustainability Officer, and will hold concurrent positions as Head of Environment(*2) and Chief Diversity & Inclusion Officer (CDIO). By leveraging her broad-ranging network of contacts in the European political and industrial arenas, Hitachi will create and implement global environmental strategies to accelerate activities aimed at achieving long-term environmental targets while maintaining comprehensive attention to sustainability. At the same time, it will seek out business opportunities and lead in the creation of value for the Group as a whole with a focus on the environment, while achieving sustainable growth through GX(Green Transformation).

(3) Achieving Growth by Investing in Innovation
Hitachi will create and implement investment strategies aimed at creating innovations by back-casting from 2050. A new Innovation Growth Strategy Division will be established(*3) to accelerate growth throughout the Hitachi Group as a whole, with President Keiji Kojima holding a concurrent position as General Manager. This Division will strengthen ties with R&D groups, startup companies, and other entities, undertaking strategic investments to bring about innovations through new technologies and business models, and will lead the next stage of growth for Hitachi.

2. Accelerating Growth by Simplifying Management

To accelerate management and succeed in global competition, Hitachi will simplify the management structure based on three sectors: Digital Systems & Services; Green Energy & Mobility; and Connective Industries. Even as it maintains the current BU structure, it will strengthen ties among divisions with similar business attributes, and strive to secure a top global position by accelerating growth through digital, environment, and innovation.

3. Strengthening the Management Base

(1) Strengthening Risk Management Structures
To ensure that Hitachi can respond quickly and comprehensively to the various risks that the Group will face as it strives for growth on a global scale, current SVP CFO Yoshihiko Kawamura will be appointed EVP, and will also hold a concurrent position as Chief Risk Management Officer (CRMO). By establishing a function under the CRMO to collaborate across related divisions in regions throughout the world and to evaluate business risks and opportunities, and by strengthening structures to enable integrated decision-making, Hitachi will respond proactively not only to natural disasters and geopolitical risks, but also to risks involving compliance, security, and elements of the supply chain such as quality and procurement. In this way, the company will strive to put in place a robust management foundation.

(2) Further Promoting Diversity and Inclusion (D&I)
Hitachi sees D&I as sources of innovation and engines that drive global growth. It assigns diverse individuals to positions where they are able to make use of their unique knowledge and experiences, and to fully demonstrate their capabilities. Hitachi will actively fill key positions with diverse talent, including women, non- Japanese, and individuals with backgrounds outside of the Hitachi Group, such as Lorena Dellagiovanna, Gajen Kandiah, and Yoshihiko Kawamura, to achieve further growth on a global scale.

(*1) To strengthen the functions of the current Hitachi Global Digital Holdings LLC, the company’s name will be changed to Hitachi Digital LLC (tentative name at present).
(*2) The current title of Chief Environmental Officer will be changed to Head of Environment.
(*3) The current Future Investment Division and Corporate Venturing Office will be combined to form Innovation Growth Strategy Division.

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, contributes to a sustainable society with a higher quality of life by driving innovation through data and technology as the Social Innovation Business. Hitachi is focused on strengthening its contribution to the Environment, the Resilience of business and social infrastructure as well as comprehensive programs to enhance Security & Safety. Hitachi resolves the issues faced by customers and society across six domains: IT, Energy, Mobility, Industry, Smart Life and Automotive Systems through its proprietary Lumada solutions. The company’s consolidated revenues for fiscal year 2020 (ended March 31, 2021) totaled 8,729.1 billion yen ($78.6 billion), with 871 consolidated subsidiaries and approximately 350,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.