12 March 2025

Annual Recognition Honors Organizations Which Practice Excellent Business Ethics

Tokyo, March 12, 2025– Hitachi, Ltd. (TSE:6501, “Hitachi”) is honored to announce that it has been recognized as one of the 2025 World’s Most Ethical Companies® by Ethisphere, the global leader in defining and advancing the standards of ethical business practices.

This prestigious award recognizes companies that demonstrate excellence in business ethics through an evaluation of over 240 proof points on practices that support robust ethics and compliance, governance, a culture of ethics, environmental and social impact, and initiatives that support a value chain.

In 2025, 136 honorees were recognized, spanning 19 countries and 44 industries. Hitachi is one of only three Japanese companies awarded, and this is the first time it has received this recognition.

Hitachi considers business ethics and compliance to be the foundation which supports global business. This achievement reflects our continuous efforts to strengthen ethical leadership, enhance the One Hitachi Compliance Program, and foster a corporate culture built on integrity. It underscores Hitachi’s long-term commitment to, and position as a global leader in promoting sustainable, responsible, and ethical business practices worldwide.

Keiji Kojima, President & CEO of Hitachi, Ltd. said:
We are truly honored to be recognized as one of the World’s Most Ethical Companies®. Hitachi aims to realize a sustainable society through the global expansion of our Social Innovation Business, with business ethics serving as one of the significant pillars supporting this vision. A corporate culture characterized by integrity and fairness strengthens trust among our stakeholders, including customers, partners, and investors, and contributes to the enhancement of Hitachi’s corporate value. We will continue to strengthen our sustainability management and cultivate an ethical organizational culture, thereby accelerating the growth of our Social Innovation Business and value creation.

Erica Salmon Byrne, Chief Strategy Officer and Executive Chair of Ethisphere said:
Congratulations to Hitachi, Ltd. for achieving recognition as one of the World’s Most Ethical Companies®. Behind this honor is a true dedication and a commitment to advancing business integrity. This approach is good for business – employees and other stakeholders value companies that prioritize the kinds of practices we measure with our process.

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
https://twitter.com/HitachiEnergy

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.