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Hitachi to Strengthen Leadership Team to Drive Global Business Expansion in the Rail Systems Business
|By JCN Newswire
|March 19, 2014 11:21 PM EDT
Hitachi to create a Global CEO Post to Oversee Global Strategies
Tokyo, Mar 20, 2014 - (JCN Newswire) - Hitachi, Ltd. (TSE: 6501, "Hitachi") today announced that it will create the post of Global Chief Executive Officer (CEO) as of April 1, 2014 to strengthen the management structure for global business expansion in the rail systems business. Specifically, Hitachi will assign a Global Chief Operating Officer (COO), Global Chief Strategy Officer (CSO) and other executives under the Global CEO to oversee and vigorously develop and advance global strategies for the rail systems business as it aims to drive further business expansion.
Rail systems are a safe and efficient mode of transportation that produces very few CO2 emissions. In the rail systems market, many regions around the world have taken active steps to build new rail systems and extend existing ones, and to introduce faster rail service by upgrading railcars and systems, among other initiatives. The size of the rail systems market was 18 trillion yen on average from 2009 to 2011. Looking ahead, the market is anticipated to increase to 20 trillion yen on average from 2015 to 2017, with steady expansion projected at a compound annual growth rate of 2.6 percent going forward.
Against this backdrop, Hitachi's rail systems business, which lies at the heart of the Social Innovation Business, has contributed to the development of rail infrastructure in Japan and throughout the rest of the world as Japan's only total railway systems integrator, comprising both a rolling stock systems business and a transport management & control systems business. In recent years, the rail systems business has accelerated global business expansion as part of its growth strategy, receiving orders for the UK Intercity Express Programme (IEP), plus turn-key orders for equipment for an urban railway line construction project in Ho Chi Minh City, Vietnam.
Hitachi will now create the post of Global CEO to further accelerate the globalization of the rail systems business. The Global Management team will further strengthen ties with world-wide networks, customers and partners to aggressively expand Hitachi's rail business world-wide.
Hitachi will appoint Alistair Dormer, Executive Chairman and Chief Executive Officer of Hitachi Rail Europe, as the Global CEO of the rail systems business. Mr. Dormer will also be appointed as a Corporate Officer of Hitachi, Ltd. as of April 1, 2014. Kentaro Masai, who will be appointed President & CEO of Hitachi's Rail Systems Company as of April 1, 2014, will serve as the Global COO with responsibility for strengthening ties with the Japanese Government and Japanese customers. Shinya Mitsudomi, CSO of the Rail Systems Company, will be appointed as the Global CSO. Together, they will provide strong leadership to advance Hitachi's rail systems business.
Alistair Dormer said: "The strengthening of the leadership team of Hitachi's rail systems business offers an exciting opportunity to lead accelerated global growth for the business. With its incredible heritage in technology innovation, Hitachi has been supplying a wide range of international products, services and solutions, and has the capacity to meet the demands of the growing global railway market. We will continue to deliver excellent service to our customer base whilst seeking new markets and opportunities for expansion."
Kentaro Masai said: "We will vigorously push ahead with global business development in the rail systems business, where growth is expected. We will do so by harnessing Hitachi's advanced rail systems technology, developed mainly in Japan over the years, and by further strengthening coordination with networks formed through our overseas businesses. We will also work to expand the rail systems business by bolstering our domestic business base and steadily promoting new business development. Working together with the Global CEO and other executives, I am committed to growing Hitachi's rail systems business into a globally competitive enterprise."
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 320,000 employees worldwide. Fiscal 2011 (ended March 31, 2012) consolidated revenues totaled 9,665 billion yen ($117.8 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com/
Copyright 2014 JCN Newswire. All rights reserved. www.japancorp.net
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