Hitachi Cable, Ltd. has established a joint venture with Shenyang Beiheng Copper Co., Ltd. (head office: Shenyang, Liaoning Province, China ; President: Zhang Min; hereinafter ''Beiheng Copper'') at Shenyang, Liaoning Province, in northeast China to manufacture and sell contact wires (note 1) and wire rods (note 2).


China currently plans to build a passenger-dedicated high-speed railway network linking major Chinese cities. By 2020, the total distance of railways in China is expected to reach 100,000 kilometers with the final 32,000 kilometers currently planned for construction. The associated demand for contact wire is expected to be some 5,000 tons annually, while maintenance of existing electrified railways is expected to result in additional annual demand of another 4,500 tons or so.


The high-speed railway aggressively pursued by China's Railways Department will use contact wires made of copper alloy, a metal that offers superior wear resistance. Hitachi Cable, Ltd. establishes the Shenyang Beiheng Hitachi Copper Industry Co., Ltd. joint venture with Beiheng Copper, which has been the top provider of contact wire for China's Railways Department, to provide Hitachi Cable's copper alloy contact wire manufacturing technology with the aim of meeting the emerging demand arising from the development of high-speed railways in China. Hitachi Cable also plans to manufacture and sell wire rods, demand for which is expected to grow in pace with economic growth in China, thereby expanding its sales in the Chinese market.

Note 1	contact wire = trolley supplying electric power to rolling stock.
Note 2	wire rod = bus bar serving as the conductor for electric cable

Profile of the new company

(1) Company name	Shenyang Beiheng Hitachi Copper Industry Co., Ltd.
(2) Location	Shenyang, Liaoning Province, China
(3) Representative	Zhang Min, President
(4) Capital	19 million US dollars (2,050 million yen, converted at 108 yen = 1 US dollar)
(5) Ownership	Hitachi Cable: 49%; Beiheng Copper: 51%
(6) Founding month and year	May 2005 (planned)
(7) Start of operations	July 2005 (planned)
(8) Major business operations	Manufacturing and sales of contact wires and wire rods
(9) Number of employees	Approx. 230 (planned as of the end of December 2005)
(10) Sales	Approx. 11 billion yen (planned for fiscal year 2006)

Profile of Beiheng Copper

(1) Company name	Shenyang Beiheng Hitachi Copper Industry Co., Ltd.
(2) Location	Shenyang, Liaoning Province, China
(3) Representative	Zhang Min
(4) Capital	86.29 million yuan (Approx 1,122 million yen, converted at 13 yen = 1 yuan)
(5) Ownership	Beiheng Corporation: 90%; others: 10%
(6) Founding month and year	December 1993
(7) Number of employees	180 (as of the end of December 2004)
(8) Sales	136 million yuan (1,773 million yen, converted at 13 yen = 1 yuan; result of fiscal year 2003)