2005 The former Hitachi Cable News Release
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Plan formulated for rationalizing number of group companies
Hitachi Cable, Ltd. has continued its efforts to enhance its consolidated management foundation through the consolidation and restructuring of Group companies. In order to accelerate these measures, as well as to establish a stronger management foundation, it has formulated and begun promotion of a plan for achieving a more appropriate number of group companies.
Hitachi Cable has a total of 57 consolidated subsidiaries in Japan and overseas. In order to improve Group synergy by ensuring the even more thorough implementation of management policies and promoting the sharing of business strategies, as well as by reducing the operating costs of subsidiaries and promoting corporate social responsibility (CSR), the company has decided to reduce the group companies to a more appropriate number.
Specifically, consolidated subsidiaries will be restructured as shown in the table below, through efforts such as the absorption of subsidiaries by Hitachi Cable, merger with other subsidiaries, coordination of functions under a holding company, and the sale of subsidiaries. In principle, plans call for completion of these restructuring efforts by March 2006 for wholly owned subsidiaries, and by March 2007 for other companies.
| Number of domestic subsidiaries | Number of overseas subsidiaries | Total | |
|---|---|---|---|
| Current status (As of January 1, 2005) |
30 | 27 | 57 |
| After restructuring* | 15 | 19 | 34 |
| * | In connection with the consolidation of functions under a holding company, the coordinating company is counted as a single company. |
The merger of Hitachi Densen Shoji, Ltd. and Nisshin Sangyo, Ltd., announced January 20, 2005, and the merger of Hitachi Cable Precision Co., Ltd., Kawanishi Kogyo Co., Ltd., and Miyako Precision Co., Ltd., announced January 24, 2005, were conducted as part of this plan. Specific future restructuring projects will be announced as the related organizations are decided.