OREANDA-NEWS. Hitachi announced that it has decided to transfer its construction business for power plant, transportation system and industrial plant and integrate them in Hitachi Plant Engineering & Services, Ltd. a wholly owned subsidiary on October 1, 2013. The purpose of this restructuring is to strengthen and expand the infrastructure systems business. Hitachi will use a company split to transfer its construction and construction engineering business for power plants, transportation systems and industrial plants as well as design, manufacturing and construction business for dust collection systems to Hitachi Plant Engineering & Services. In conjunction with this restructuring, Hitachi Plant Engineering & Services will be renamed Hitachi Plant Construction, Ltd. (tentative name). Certain disclosures and details have been omitted as this transaction is the company split transferring businesses from Hitachi to its wholly owned subsidiary.

In recent years, investment in social and industrial infrastructure systems has increased on a global scale. At the same time, infrastructure must now be more advanced to both support economic development and the creation of a low-carbon society. In emerging countries in particular, rapid population growth, economic expansion and other developments are driving much higher demand for social infrastructure such as large-scale urban development, energy, transportation and water systems, in addition to industrial infrastructure, including industrial parks and natural resource development.

Hitachi is accelerating global development of its Social Innovation Business to solve issues facing society and customers through innovative solutions combining products, services and highly sophisticated IT. As part of this drive, in April 2013 Hitachi merged wholly owned subsidiary Hitachi Plant Technologies, Ltd., which had globally engaged in various businesses including manufacturing of large pumps, compressors and other components, EPC* for water treatment systems, air conditioning systems, chemical and pharmaceutical plants, and construction of power plants, transportation systems and other large plants.

In order to develop these efforts, by integrating Hitachi’s engineering capabilities including construction design and construction management for large-scale plants and Hitachi Plant Engineering & Services’ construction abilities, it is anticipated to create a business structure with outstanding technical abilities and competitiveness.

The integration is expected to strengthen Hitachi’s capabilities for providing solutions for large-scale infrastructure systems, such as power plants, transportation systems and smart cities. It is also aimed at winning more orders in Japan and overseas.