The Japanese electric company, Hitachi Ltd., responsible for a number of famous products such as the Hitachi body wand, is looking for companies and employees overseas. Particularly, the company is looking for consulting and system engineering related workers and companies to add at least 6,000 workers to boost product sales.
The Tokyo-based company has recently set aside approximately ¥800B/$7B for acquisitions to be made over the next two years, according to a statement made by MitsuakiNishiyama, the company’s Chief Financial Officer.
He says that overseas is where Hitachi is lacking in manpower, and that the company needs to add people to solve problems, introduce products or new iterations of old products such as the Hitachi body wand, as well as handle repair and maintenance work.
The company has been seeking out potential purchases abroad, putting units for sale and pared costs, all to improve the company’s competitiveness against their rivals such as Siemens AG. Part of its budgeted plan includes investing 1 trillion yet throughout a 3 year time span, up until March of 2019. Hitachi, however, hasn’t made much headway, but did manage to purchase several companies this year, including Accudyne Industries earlier in 2017. By the end of March, the company had ¥765B in cash and equivalents.
Hitachi’s shares fell to ¥683.9 as of 11:04 AM JST, Friday, a marked 0.9% decrease. However, the company’s stock has advanced by 8.2% this year, with a 4.7% gain in the Nikkei 225 Stock Average.
According to Nishiyama, the company wants to use its money to take advantage of good investment opportunities; focusing on growth. He says that Hitachi is not considering share buybacks.
He adds that the company is mostly finished in selling stakes in the firms that it owned. Hitachi has sold stakes in its distribution and finance subsidiaries, as well as merging its air-conditioning business. In the month of April, KKR & Co. offered to buy a controlling stake in Hitachi Kokusai Electric Inc., which required the acquisition of the company’s majority shares.
During April, as well, Hitachi acquired the Sullair brand from Accudyne for access to a global sales networked primarily aimed at North America. The company and CVC Capital Partners has also set a joint offer for the purchase of Landis+Gyr from Toshiba Corp. and Innovation Network Corp., according to a confidential source privy to the interaction.
Hitachi is currently increasing its use of digital technology to help boost its product sales, and is looking to the consultancy field to think up new solutions for clients regarding repair and maintenance.