20 Years of Growth

The integration development process commenced by consolidating the sales and service operations of the Hokkaido and Kansai branch offices into a shared office space, a successful integration model that was subsequently extended to other domestic branch offices. As a result, the company implemented the comprehensive “Operation Z” program across the organization. To drive customer acquisition and foster growth, the company organized product exhibitions and conducted seminars, including exclusive executive sessions for distributors, held at multiple locations. These initiatives aimed to actively advance the development of new customers and expand the company's reach to flourishing enterprises.
In December 2002, Hitachi Industrial Equipment (Nanjing) Co., Ltd. was founded in China, and commenced the production of industrial inverters in April 2003. During fiscal year 2002, net sales of HIES reached 129.2 billion yen, with global sales accounting for 9.4% of the total.
In 2003, the Solutions & Services Division and the Monozukuri Business Division were established, initiating new endeavors in the domains of services and manufacturing, and a factory remodeling project was initiated to facilitate these advancements. To expand its sales channels for inkjet printers and control devices, HIES established a sales company, Hitachi Drives & Automation GmbH (HIDA), in Germany and acquired a stake in a European distributor in Italy.
In the same year, Narashino Works was the recipient of the Minister of Economy, Trade and Industry Award for “Excellent Energy Management Factory.” In fiscal year 2003, net sales amounted to 133.5 billion yen, with global sales accounting for 11.6% of the total.

In April 2005, the design and manufacture of motor block hoists and industrial inkjet printers were transferred from Hitachi Home & Life Solutions to Hitachi Industrial Equipment Systems as Taga Works.
The company then formulated its “2010 Strategy,” a company-wide campaign to achieve net sales of 200 billion yen and operating profit of 10% by FY2010, and set priority themes of increasing commercial strength, reforming manufacturing and operations, and reinforcing the engineering, information-related, and new businesses. At the same time, the company established a business concept that Hitachi Industrial Equipment Systems contributes to environmental protection and energy conservation and concentrated on expanding and strengthening the solutions business.
In sales activities, a CRM Project Division was established to expand the coverage of industrial equipment users nationwide from 37% to 40%. In solutions and services, the East and West remote monitoring service systems were consolidated, while in manufacturing, the company initiated a product modification project to achieve a 30% new product development rate. That year, production and sales of compressors and inkjet printers set new highs.
In February 2006, the Nakajo Works received the Minister of Economy, Trade and Industry's “Excellent Energy Management Factory” award.
With the aim of achieving a global business ratio of 20%, Hitachi Industrial Equipment (Nanjing) Co., Ltd. started manufacturing compressors, and Tokico Compressor (Suzhou), a technical partner, started manufacturing small size compressors. In addition, the industrial machinery department of a Singapore distributor was absorbed into Hitachi Asia Ltd. to strengthen the sales organization. In fiscal 2005, net sales were 151 billion yen, with global business accounting for 14.8% of the total.

In fiscal 2006, the inaugural national convention for presidents of HIES dealerships took place at the Imperial Hotel in Tokyo. Concurrently, the Kansai Branch Office launched its first measurement and diagnosis solutions van, which by 2008 was followed by the further deployment of 10 such vans to various branches nationwide. The company further advanced its initiatives by promoting FEMS, implementing electronic map information, and introducing RFID tags to better “visualize” customers and deliveries. Additionally, the company undertook “Remodeling Projects NEXT 1” to upgrade production lines, facilities, and technology in its factories.
To facilitate global expansion, the company entered into a technical cooperation agreement with Shandong Luneng Ruihua for amorphous transformers, and with Hitachi Taiwan for brushless DC motors. In the North American market, the company launched its air compressor business and established new distributors for switchgear, compressors, and inkjet printers.
In fiscal 2006, we implemented the “Emergency 5-5-5 Strategy” to increase sales and reduce costs. As a result, net sales in fiscal 2006 amounted to 166.1 billion yen, of which global business accounted for 15.8%.

The Financial Crisis, which is often symbolized by the collapse of Lehman Brothers, had a profound impact for several years, particularly in the context of Hitachi Industrial Equipment Systems' activities.
In November 2008, HIES held an exhibition at the Akihabara UDX Building in Tokyo, which attracted an unprecedented 13,000 visitors.
During this time, HIES implemented various initiatives to enhance its operations. A drive system training center was established to improve the skills of employees and distributor employees engaged in sales activities. In the field of engineering services, the company set up a technical standards subcommittee for a quality improvement project. Additionally, HIES completed the construction of a new building at Air Compressor System Division (Shimizu Works)
Amidst these developments, notable achievements were also recognized. HIES's domestic 5-horsepower induction motor, a foundational product of Hitachi Group, was designated a “Mechanical Heritage” by the Japan Society of Mechanical Engineers. The Hitachi Motor was also certified as an “Eco-Rail Mark” product by the Ministry of Land, Infrastructure, Transport and Tourism.
HIES also pursued expansion efforts globally. It constructed a second plant dedicated to compressors at Hitachi Industrial Equipment (Nanjing) in China and also expanded its sales of amorphous transformers in China, Europe, and North America, while also increasing the distribution of submersible motors in the Middle East and Africa. HIES established a Global Service Support Center within its International Business Division to support these international endeavors.
However, as summer approached, the “Lehman Shock” hit, and the Financial Crisis aggravated the Global Recession. Despite emergency measures implemented by the company, net sales in fiscal 2008 amounted to 159.8 billion yen, with global sales accounting for 16.7% of the total.

In fiscal 2009, both orders and sales remained under pressure. Under these circumstances, the Bebicon Division was transferred to HIES from the Automotive Systems Group of Hitachi, Ltd. and became the Sagami Works of the Air Compressor System Division.
In terms of environmental measures, the company strengthened its business by establishing environmental and energy conservation solutions centers at its Kanto, Chubu, and Kansai branches. Internally, integrated energy monitoring systems were installed at all business offices in response to the provisions of the revised Energy Conservation Act.
Sales were aggressively expanded by focusing on food products, pharmaceuticals, electronic components, and outstanding local enterprises. In engineering services, dedicated maintenance proposal patrol vans “HOSHUCA” were deployed at the Kansai and Keiji Branch offices as a follow-up to the measurement and diagnosis solution vans.
Tokico (Malaysia) Sdn. Bhd. and Tokico Compressor (Suzhou) became Hitachi Group companies, and a joint venture, Hitachi Qianden (Hangezhou) Transformer Co. Ltd. (HQT) was established in which HIES had a 40% equity participation.
In addition to these proactive efforts, cost-cutting and other management efforts resulted in net sales in fiscal 2009 amounting to 121.5 billion yen, with global business accounting for 17.2% of the total, ensuring the company turned a profit for the full year.