OREANDA-NEWS. April 03, 2012. Hitachi, Ltd. (NYSE:HIT / TSE:6501, Hitachi) today announced its decision to integrate Hitachi Canada Ltd. (President & CEO : Howard Shearer, HCL) and Hitachi Canadian Industries Ltd. (President & CEO : Tom Kishchuk, HCI) to establish Hitachi Power Systems Canada Ltd. on April 1, 2012. This move aims to strengthen the business structure of Hitachi's power systems business in Canada.

This integration will unify manufacturing and sales by combining the sales functions of HCL with HCI's procurement and manufacturing functions ; the goal of which will be to strengthen a market-driven business structure that can rapidly respond to whole Canadian market needs. This move will also expedite decision-making and improve management efficiency in an effort to enhance the competitiveness of the power systems business in the Canadian market and achieve further business expansion.

In 1971, Hitachi established HCL as a regional sales company in Canada, and in 1988 established HCI as a manufacturing base for power generation equipment. Under this structure, Hitachi has developed its power systems business in Canada, building up an extensive track record in thermal, hydroelectric and nuclear power generation. In 2002, Hitachi won an engineering, procurement and construction (EPC) contract from EPCOR Power Development Corporation, a power utility based in Alberta, for the Genesee Phase 3 project, Canada's first supercritical pressure coal-fired thermal power plant (495MW). This EPC contract spanned design, manufacturing, installation, and plant trial operation with respect to the entire facility, including turbines, generators and boilers. Furthermore, in 2007, Hitachi won a turnkey order of facilities for 495MW supercritical pressure coal-fired thermal power generation equipment for the Keephills No.3 unit operated by EPCOR and TransAlta Corporation.

Recently, Canada has seen increasing demand for secure, safe and highly economical social infrastructure that will enable an optimal energy supply, including high-efficiency thermal power generation, as well as nuclear power generation and renewable energy. This demand has been fueled by rising concerns about the environment, including global efforts to curb CO2 emissions as well as increasing demand for energy due to population growth and other factors. For more than 40 years, Hitachi and Canada have had a cooperative relationship in various power generation fields, including work on coal- and natural gas-fired thermal power and wind power generation technologies. Also, in recent years, Hitachi and Saskatchewan Power Corporation (SaskPower) have agreed to collaborate on technological advancements and implementation in the fields of low-carbon energy technologies, including Carbon Capture & Storage (CCS). In addition, Hitachi and the Government of Saskatchewan have agreed to conduct joint research and development and verification concerning future nuclear technologies, including small modular reactor technologies and uranium recovery technologies.

Against this backdrop, Hitachi will integrate HCL and HCI to establish Hitachi Power Systems Canada Ltd., with the goal of responding rapidly and effectively to changes in the business environment going forward. Through this business integration, Hitachi will centralize authority and responsibility at Hitachi Power Systems Canada Ltd., as a regional base for its power systems business combining both manufacturing and sales. This move will speed up decision-making as it relates to collaboration with partner companies, acquisitions and other matters, while enhancing competitiveness through improved management efficiency. Through these measures, Hitachi will work to win new projects in such fields as thermal and nuclear power generation, and expand preventive maintenance and other services, to further expand the power systems business in Canada.

Furthermore, with the integration, Hitachi Power Systems Canada Ltd. acquires other sales resources of the Power Systems Business, and will work together with related divisions to manage regional operations, strengthen ties with government agencies and cultivate new business in Canada as a regional sales company.

Hitachi is focusing on accelerating the global development of its Social Innovation Business, which provides social infrastructure underpinned by highly reliable and highly efficient information and communications technologies. By strengthening its business structure, Hitachi will continue to actively develop its power systems business in the Canadian market, with the aim of contributing to the stable supply of electricity in that country.