24 September 2024

• $60 million USD for the expansion of the high-voltage switchgear and breakers factory in Mount Pleasant, Pennsylvania
• $25 million USD expansion in the distribution, power, and traction transformer factory in South Boston, Virginia, and $70 million USD distribution transformer factory in Mexico
• Capacity expansion and upgrades to help meet growing demand, creating hundreds of skilled jobs

New York/Zurich, September 23, 2024 – At Climate Week NYC, Hitachi Energy announced plans to invest an additional $155 million USD to expand its manufacturing capacity in North America. This includes the construction of a new distribution transformer factory in Reynosa, Mexico, and expansions to its transformer factory in South Boston, Virginia, and its highvoltage switchgear and breakers factory in Mount Pleasant, Pennsylvania.

The order backlog of the company has more than tripled since 2020 with the U.S. making a substantial contribution. Hitachi Energy has added over 8,000 employees between 2020-2023, including more than 1,200 in the U.S. In North America, we have already announced over $150 million USD of investments and future investment plans are under consideration.

"Demand for electrical equipment, including transformers and switchgear, is surging globally, and significantly in North America, and one of our highest priorities is making sure that we are growing our capabilities to address our customer's present and future needs," said Andreas Schierenbeck, CEO of Hitachi Energy. "To achieve our goals, we will continue to expand and optimize our footprint in the North American region, leverage our expansive global presence, and prioritize R&D and innovation to drive the energy transition without compromising safety and reliability."

Transformers
The investments in North America include $70 million USD in the construction of a new distribution transformer factory in Reynosa, Mexico alongside an additional investment of over $25 million USD to expand its South Boston, Virginia transformer factory, in the US. 

The new transformer factory in Reynosa will address the need for single-phase, padmount distribution transformers used widely in the North American market and will bring 350 jobs to the region.

The investment in South Boston will help expand the production capacity for large distribution transformers and is expected to contribute to the region's economic growth and development, creating about 100 new jobs ranging from skilled manufacturing to administrative roles.

These initiatives are adding up to other announced investments to enhance the transformers' capacity, including investments directly in the region and globally. In the region, this includes the expansion in Varennes, Quebec, Canada, and the recently completed project in Jefferson City, Missouri, US.

Hitachi Energy announced projects in April and July of 2024 in Canada of an overall $140 million (CAD) investment to support the establishment of a new HVDC simulation center in Montreal, and also upgrade and modernize its power transformer factory in Varennes, and other facilities in Montreal.

Globally, Hitachi Energy is also investing in other markets to enhance its global footprint, with more than seven factories currently supporting the market demand for transformers coming from Europe, South America, and Asia.

High Voltage Switchgear and Breakers
Hitachi Energy is also announcing a $60 million USD investment in its Mount Pleasant, Pennsylvania facility. This expansion aims to double production capacity for high-voltage switchgear and breakers, including dead tank breakers, gas-insulated switchgear and hybrid switchgear. Driven by the surging demand for high-voltage products in North America, the investment will create around 100 new jobs.

A significant portion of the investment includes the implementation of a new gasmanagement system for EconiQ™ switchgear production. North America has been a pioneer in adopting the EconiQ eco-efficient technology, which eliminates the use of sulfur hexafluoride (SF6), the most potent greenhouse gas from high-voltage equipment. This investment aligns with Hitachi Energy's commitment to sustainability and reinforces its position as a leader in high-voltage eco-efficient solutions. 

Transformers as well as high-voltage switchgear and breakers play a key role across the power value chain, safeguarding and enabling efficient transmission and distribution of electricity. Hitachi Energy has the world’s largest transformer installed base, portfolio range, market coverage, and manufacturing capacity.

As the leader in high-voltage technology, we remain at the forefront of innovation, advancing eco-efficient solutions through our SF6-free EconiQ portfolio. These innovations retain the highest safety and performance standards while staying compact and offering the lowest carbon footprint in a life-cycle assessment.

About Hitachi Energy
Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We are advancing the world’s energy system to be more sustainable, flexible and secure and we collaborate with customers and partners to enable a sustainable energy future – for today’s generations and those to come. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries, serving customers in utility, industry, transportation, data centers and infrastructure sectors. With innovative technologies and services including the integration of more than 150 gigawatts of HVDC links into the power system, we help make the energy value chain more efficient, making electricity more accessible to all. Together with stakeholders across sectors and geographies, we enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. Headquartered in Switzerland, we employ around 45,000 people in 90 countries and generate business volumes of around $13 billion USD.
https://www.hitachienergy.com
https://www.linkedin.com/company/hitachienergy
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About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.

31 May 2024

Business stands ready to drive sustainable global mobility transition

• Acquisition, completed 31 May, sees Hitachi Rail expand its global presence to 51 countries with the majority of its revenues now coming from signalling and systems.
• Combined business’ revenues €7.3bn in FY23 (pro-forma) achieve Hitachi Rail’s longstanding target to surpass ¥1 trillion annually
• Deal aligns with Hitachi Group’s sustainable growth strategy with focus on mega trends of digitalisation and sustainability transformation.

Hitachi Rail announced today the completion of its €1,660m acquisition of Thales’ Ground Transportation Systems (GTS) business, expanding its global presence to 51 countries with the majority of its revenues now coming from higher-return signalling and systems.

Hitachi Rail is right at the forefront of the global mobility sector following the acquisition. The closing strengthens the company’s strategic focus on helping current and potential Hitachi Rail and GTS customers through the sustainable mobility transition – the shift of people from private to sustainable public transport, driven by digitalisation.

The deal advances a cycle of organic growth and acquisitions that sees Hitachi Rail achieve its annual revenue goal of more than ¥1 trillion with the business’ combined revenues growing to €7.3 billion (¥1.1 trillion; USD $7.9 billion) FY23 pro-forma. It also supports the company’s profit growth by continuing the shift in its revenue profile, with the majority now coming from its higher-return signalling and systems division post-transaction (around 60%). The business’ signalling will operate over 26,000km of mainline railway and 4,600km of urban metros around the world.

Hitachi Rail’s key locations in Japan, Italy, the UK and the US are strategically complemented by GTS’ large centres in Germany, France, Spain and Canada – with both businesses having an established reputation in the wider European market, the Middle East and Asia-Pacific.

The closing sees 9,000 highly skilled colleagues join the business taking Hitachi Rail to 24,000 employees worldwide. It enhances the company’s full portfolio of transport solutions with expertise in rolling stock, urban turnkey railways, mainline digital signalling, freight signalling, and communication and supervision systems.

The transaction almost doubles Hitachi Rail’s engineering capability and increases investment in innovation to provide an enhanced digital product offer, spanning signalling, ticketing, operations and cyber security solutions. The company has established a new Agile Innovation team and will combine the expertise from GTS’ five global Digital Hubs & Competence Centres and the digital strength of Hitachi’s Group companies. The new business is also poised to achieve greater cost competitiveness, including improving the effectiveness of procurement, optimising engineering capabilities and investment in R&D.

Hitachi President and CEO Keiji Kojima said:
“Hitachi continues its transformation to become a global leader in Social Innovation Business and is undergoing a mode change to achieve growth under the Mid-term Management Plan 2024. The acquisition of the Thales GTS business represents a significant milestone, and we are pleased to have achieved it in the final year of the plan.

“By welcoming new Hitachi Rail colleagues, Hitachi's Railway systems business has strengthened its presence in the global market. Hitachi will enhance its digital services by leveraging IT, OT, and products on an expanded installed base in the mobility arena, and solve global social challenges through co-creation with customers. Through this acquisition and Hitachi’s overall growth, we will continue to support our customers' digital and green transformations and contribute to the realisation of a sustainable society.”

Giuseppe Marino, Group CEO of Hitachi Rail said:
“Completing this transaction is a historic moment for our business, as we expand to 51 countries and increase our revenues to €7.3bn globally [FY23 pro forma]. Hitachi Rail’s greater global reach and accelerated innovation is the start of an exciting new chapter that will deliver enhanced value and growth in new markets.

“With Thales’ Ground Transportation Systems team on board, we can better deliver the sustainable mobility transition for the world’s best transport companies. Bringing our teams together sees our engineering capacity nearly double and means faster innovation and more advanced technology-led solutions for our customers.”

The deal marks a major step in Hitachi Rail’s parent company, Hitachi, Ltd.’s, long-running strategy to transform its businesses around the concept of “Social Innovation”. The Group has led a strategic programme to reshape its portfolio of companies around essential sectors delivering the infrastructure and technology that underpins the progress of sustainable societies. It focuses Hitachi, Ltd companies on the key industries at the crossroads of the major trends shaping today’s world: the energy transition, the digital and AI revolution, and the sustainable mobility transition.

About Hitachi Rail
Hitachi Rail is committed to driving the sustainable mobility transition and has a clear focus on partnering with customers to rethink mobility. Its mission is to help every passenger, customer and community enjoy the benefits of more connected, seamless and sustainable transport. With revenues of over €7bn and 24,000 employees across more than 50 countries, Hitachi Rail is a trusted partner to the world’s best transport organisations. The company's reach is global, but the business is local - with success built on developing local talent and investing in people and communities. Its international capabilities and expertise span every part of the urban, mainline and freight rail ecosystems – from high quality manufacturing and maintenance of rolling stock to secure digital signalling, smart operations and payment systems. Hitachi Rail, famous for Japan's iconic high speed bullet train, draws on the digital and AI expertise of Hitachi Group companies to accelerate innovation and develop new technologies. Hitachi Group is present in 140 countries with over 270,000 employees and global revenues of €54.55bn / ¥8,564 bn. For more information, visit hitachirail.com.

3 June 2024

• Three-year, projected multi-billion-dollar strategic partnership will focus on creating innovative industry solutions that deliver transformative outcomes for businesses and society.
• Hitachi Group will embed the Microsoft cloud, Azure Open AI Service, Dynamics 365, Copilot for Microsoft 365 and GitHub Copilot into their Lumada Solutions to accelerate growth of the Lumada business, and improve productivity for their 270 thousand employees.
• Hitachi will train more than 50 thousand “GenAI Professionals” on advanced AI skills. As part of the partnership, Hitachi will incorporate training provided by Microsoft into Hitachi’s training.

Redmond, June 3 / Tokyo, June 4, 2024 – Hitachi, Ltd. (TSE:6501) and Microsoft Corporation announced a projected multi-billion dollar collaboration over the next three years, that will accelerate social innovation with generative AI. Through this strategic alliance, Hitachi will propel growth of the Lumada business, with a planned revenue of 2.65 trillion yen (18.9 billion USD)^*1 in FY2024, and will promote operational efficiency and productivity improvements for Hitachi Group’s 270 thousand employees.

Specifically, Hitachi will embed the Microsoft cloud, Azure Open AI Service, Dynamics 365, Copilot for Microsoft 365, and GitHub Copilot into Lumada solutions to provide innovative solutions for the energy, mobility and other industries to deliver better outcomes for businesses and society. In addition, the two companies will promote joint projects to address pressing business needs such as bolstering cloud services, enhancing security, and mitigating the environmental footprint of data centers, which have become an increasing area of focus with the growing use of generative AI.

“Hitachi has been driving transformation by applying AI across the Hitachi Group to improve productivity and will invest 300 billion yen（2.1 billion USD）*1 in GenAI to capture new growth opportunities in FY2024. Hitachi and Microsoft have already been working on a variety of co-creation projects including the development of next-generation digital solutions for the manufacturing and logistics fields^*2, and the development of a field-extended metaverse that runs on Microsoft Teams,” said Keiji Kojima, President and CEO of Hitachi. “Under this new agreement, we are excited to further accelerate social innovation by expanding our efforts to social infrastructure areas such as energy and mobility, and by applying generative AI, to improve the productivity of frontline workers, which will become even more important in the future. By combining our capabilities, we can help solve the issues faced by our customers and society, and contribute to a more sustainable future.”

“We are entering a new era of AI with the promise to deliver transformative business outcomes across every role and industry,” said Satya Nadella, Chairman and CEO, Microsoft. “Our expanded partnership with Hitachi will bring together the power of the Microsoft Cloud – including Microsoft Copilot – with Hitachi’s industry expertise to improve the productivity of 270,000 Hitachi employees and help address customers’ biggest challenges, including sustainability.”

Hitachi’s Business Transformation
Hitachi’s Generative AI Center^*3 and Microsoft will collaborate to improve operational efficiency and application development within the Hitachi Group by using Copilot for Microsoft 365 and GitHub Copilot. Hitachi will also use Azure OpenAI Service to enhance its customer service. As part of Hitachi’s group-wide transformation, Hitachi will combine Azure OpenAI Service and GitHub Copilot with its systems development expertise to maintain high quality and improve productivity for mission-critical system development. Hitachi’s internal validation confirmed that when its detailed system design knowledge was incorporated with Microsoft Azure OpenAI Service and GitHub Copilot, the application source code could be properly generated 70-90% of the time, resulting in high quality output.^*4

Hitachi Rail is leveraging GenAI for predictive maintenance, enhancing equipment monitoring and refining forecast accuracy. This proactive approach prevents breakdowns, increases service quality, reduces operating expenses, and augments safety. For example, a cloud-based platform on Microsoft Azure was utilized to streamline data visualization and analysis, empowered by AI to furnish data-driven insights to digitally monitor rail infrastructure. These insights were translated into actionable steps for Network Rail, enhancing decision-making for predictive maintenance of overhead lines.

Develop innovative digital solutions
Hitachi is enhancing its Lumada solutions by incorporating the capability of generative AI. As part pf the initiative, Hitachi has already started to use Microsoft’s Generative AI for JP1 Cloud Services, a SaaS version of JP1, its integrated operations management software with approximately 20 thousand customers. This will accelerate response times to address failures, and enable improved operational efficiencies for IT departments, financial and public institutions. In an internal verification test conducted earlier, Hitachi confirmed that the time required for the operator to make an initial response to an alert was reduced to approximately two-thirds by using generated AI to respond to the alert and displaying the source of the citation, such as a manual, that provided the basis for the response.

In addition to this, Hitachi and Microsoft will also support the energy transition with improved access to and strengthening of digital solutions for asset performance management, energy trading, and risk management to reduce downtime and increase profitability. Increased computing power and cloud infrastructure are both critical to scaling these applications. Hitachi Energy’s Enterprise Software Solutions technology and its partnership with Microsoft is key to optimizing the energy network, from generation, through transmission and distribution, and ultimately in delivering reliable and sustainable energy to customers.

Joint projects to promote sustainable growth
Multiple Hitachi Group Companies including GlobalLogic, Hitachi Digital Services, and Hitachi Solutions, deliver a wide range of digital engineering, IT & managed services, and application services for the cloud. Additional development efforts through this partnership will focus on enhancing this broad range of services with the aim of sustainable innovation with Microsoft.

As the impact of CO2 emissions from AI on the global environment increases, Hitachi and Microsoft will work toward zero carbon, starting with a data center project in Europe, to reduce environmental impact.

Strengthen digital skilling and talent development
Hitachi will train more than 50 thousand GenAI Professionals. As part of the partnership, Hitachi will incorporate training to acquire advanced software development skills using GitHub Copilot and Azure OpenAI Service into the program to develop GenAI Professional, talents who support customers’ transformation using AI.

About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.

About Microsoft Corporation
Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more..

*1 Forecast as of April 26, 2024, calculated at 140 yen to the U.S. dollar.
*2 Hitachi News Release (June 26, 2020) “Hitachi and Microsoft form a strategic alliance to advance next-generation digital solutions for manufacturing and logistics across Southeast Asia, North America and Japan” https://www.hitachi.com/New/cnews/month/2020/06/200626.html
*3 Hitachi News Release (May 15, 2023) “Hitachi Establishes New ‘Generative AI Center’ to Accelerate Value Creation and Improve Productivity in the Lumada business by promoting the use of Generative AI” https://www.hitachi.com/New/cnews/month/2023/05/230515.html
*4 Hitachi News Release (May 21, 2024)“Hitachi to Accelerate System Development Transformation with Generative AI" https://www.hitachi.com/New/cnews/month/2024/05/240521.html

28 May 2024

Hitachi will use Gemini models and Vertex AI to help enterprises improve business performance

Santa Clara and Sunnyvale, California, May 28, and Tokyo, Japan, May 29, 2024 – Hitachi, Ltd. (TSE:6501), and Google Cloud today announced a multi-year partnership to accelerate enterprise innovation and productivity with generative AI. Hitachi will form a new business unit focused on helping businesses solve industry challenges with Gemini models, Vertex AI, and other cloud technologies, and it will also adopt Google Cloud’s AI to enhance its own products and services. Through the partnership, Hitachi will further accelerate growth of Lumada, its core digital business, and it will advance operational efficiencies for the Hitachi Group.

Led by GlobalLogic, a leader in digital engineering and a subsidiary of the Hitachi Group, the companies will establish the Hitachi Google Cloud Business Unit and the Google Cloud Center of Excellence (CoE) to rapidly scale Google Cloud technology to new and existing enterprise customers. Additionally, Hitachi will collaborate with Google Cloud to incorporate training on Google Cloud’s GenAI as part of Hitachi’s GenAI Professional training program. The program will deepen the expertise and managed services available through these business units, which will ensure large-scale organizations have access to the resources needed to fundamentally improve how they operate with AI. 

Additional focus areas of the partnership will include:

• New GenAI solutions for software modernization and customer service: Hitachi will use Gemini models to build solutions that help businesses efficiently modernize legacy software systems, and it will adopt Google Cloud Contact Center AI to power more effective and accurate customer service experiences. For instance, using Google Cloud Agent Assist, customer service representatives can be supported with real-time knowledge assistance and resolution suggestions to help them be more productive and provide better service. The new solutions will be compatible with GlobalLogic's Platform of Platforms architecture, which is designed to address the needs of intelligent enterprises. 
• Enabling safe, secure GenAI solutions for on-premises and cloud environments: Hitachi’s new solutions will support customers running both on-premises and in the cloud, enabling enterprises to modernize operations while retaining existing IT environments. The solutions will also be compatible with Virtual Storage Platform One, so that users can build GenAI applications using data stored on Hitachi Vantara’s hybrid cloud platform.
• Joint go-to-market initiatives: Hitachi and Google Cloud will better align their sales, marketing, and engineering teams to ensure that customers across industries have access to the resources needed to optimally deploy and manage GenAI projects through Hitachi Google Cloud Business Unit and Google Cloud CoE. This will include the GenAI Professionals that Hitachi trains on Google Cloud technology.
• Strengthen GenAI talent development: Hitachi’s GenAI Professionals play a critical role in supporting customers' transformation with AI, and Hitachi will train more than 50,000 GenAI Professionals through its global training program. As part of the program, Hitachi will include training on Google Cloud’s GenAI solutions and AI technology.

GlobalLogic and Google Cloud have collaborated for more than 15 years and helped empower enterprises with solutions that achieve their business objectives with efficiency and scale.

“Through this partnership, Hitachi will leverage Google Cloud's AI capabilities to improve and enhance employee productivity and accelerate innovation. By augmenting the capabilities of our developers and customer success units with Google Cloud GenAI solutions, such as Vertex AI and Gemini models, Hitachi will be able to better serve the needs of its customers in diverse industries and across complex domains such as energy, mobility, manufacturing and digital services,” said Toshiaki Tokunaga, Executive Vice President and Executive Officer at Hitachi. 

Nitesh Banga, CEO, Digital Engineering Business Unit, Hitachi, and President & CEO, GlobalLogic, added: “Through this global alliance, Hitachi is strategically aligning its go-to-market approach together with Google Cloud to drive tangible results. We are establishing clear pathways for collaboration, ensuring enhanced efficiency and acceleration in delivering solutions to our collective clients. This investment in building our Google Cloud Business Unit will provide the necessary energy, focus, and cohesive teamwork essential for achieving the desired accelerated time-to-market, translating innovation into swift revenue growth.”

“To solve complex business challenges with generative AI, enterprises need advanced technology and the technical expertise to successfully deploy it throughout their organizations,” said Thomas Kurian, CEO of Google Cloud. “Our partnership with Hitachi will provide customers with the resources needed to optimally build, implement, and manage every stage of their generative AI projects.” 

About Google Cloud 
Google Cloud is the new way to the cloud, providing AI, infrastructure, developer, data, security, and collaboration tools built for today and tomorrow. Google Cloud offers a powerful, fully integrated and optimized AI stack with its own planet-scale infrastructure, custom-built chips, generative AI models and development platform, as well as AI-powered applications, to help organizations transform. Customers in more than 200 countries and territories turn to Google Cloud as their trusted technology 

About Hitachi, Ltd. 
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com

About GlobalLogic 
GlobalLogic (www.globallogic.com) is a leader in intelligent digital engineering. We help brands across the globe design and build innovative products, platforms, and digital experiences for the modern world. By integrating experience design, complex engineering, and data expertise—we help our clients imagine what’s possible and accelerate their transition into tomorrow’s digital businesses. Headquartered in Silicon Valley, GlobalLogic operates design studios and engineering centers around the world, extending our deep expertise to customers in the automotive, communications, financial services, healthcare and life sciences, manufacturing, media and entertainment, semiconductor, and technology industries. To learn more, visit www.globallogic.com. 

About Hitachi Vantara 
Hitachi Vantara is transforming the way data fuels innovation. Hitachi Vantara provides the data foundation the world's leading innovators rely on. Through data storage, infrastructure systems, cloud management and digital expertise, the company helps customers build the foundation for sustainable business growth. To learn more, visit www.hitachivantara.com.