Business / Corporate

Hitachi to spend ¥1.2 trillion on research and development over three years

JIJI

Major electronics and machinery-maker Hitachi Ltd. said Tuesday it will spend ¥1.2 trillion on research and development activities over the three years to fiscal 2021, up about 20 percent from the level in fiscal 2016-2018.

The company plans to use up to ¥2.5 trillion for growth investment in fiscal 2019-2021, including business acquisitions, up from ¥500 billion in the previous three years.

“We’ll invest intensively in the information technology field to globalize our operations,” Hitachi President Toshiaki Higashihara said at a meeting with investors held in Tokyo, explaining its new three-year business program.

He also said Hitachi will promote structural reforms at business divisions with low operating margins, including auto parts, medical equipment and home appliances.

In fiscal 2021, Hitachi aims to generate ¥2.6 trillion in sales in the IT sector, up from ¥2.1 trillion in fiscal 2018, and ¥1.7 trillion at the energy sector, up sharply from ¥423.5 billion.

In the IT sector, Hitachi will use ¥1 trillion for growth investment over the three years, mainly for projects related to its Lumada digital solutions that are designed to improve efficiency in train operations and electricity supply systems.