OREANDA-NEWS. Hitachi, Ltd. and Hitachi (China) Research and Development Corporation ("HCR&D") announced the establishment of the ‘Hitachi China Materials Technology Innovation Center', and plans to enter a comprehensive agreement with Shanghai Jiao Tong University including the establishment of a joint laboratory.

The new Center will conduct analysis, assessment and development of efficient manufacturing process technology for materials to be used in Hitachi Group products. By promoting increased local procurement of materials and reducing material costs, the Center will contribute to the Hitachi Smart Transformation Project for overhauling cost structure.

Hitachi has approximately 160 Group companies with approximately 44,000 employees in China, and conducting business in a wide range of areas centring on Social Innovation Business, such as elevators, escalators, construction machinery, ATM, thermal power plants, railway systems, high functional materials, and medical equipment. The aim of the newly established Center will be to provide Hitachi Group companies in China with material-related solutions through the analysis, assessment and development of process technology for materials which can be procured in China. In addition to material quality and characteristics assessment, development of manufacturing process technology to utilize Chinese materials will be conducted in through joint research with the School of Materials Science and Engineering of Shanghai Jiao Tong University.

The Center will also investigate any material defects and propose countermeasures. Until now, such research was conducted at sites in Japan or commissioned to external organization in China but with the establishment of this Center, this work can now be conducted within the Hitachi Group in China to achieve faster response and shorter development time. Further, increasing the proportion of local materials by the Hitachi Group through the procurement of relatively inexpensive and superior material, will lead to reduction in procurement costs.

Hitachi will, by the establishment of the ‘Hitachi China Materials Technology Innovation Center', localize research and development activity for utilization of materials in China, and resolve issues related to materials used in business in China. In addition, the locally-led research and development approach will be accelerated for further business expansion.