20 Years of Growth

Generate strong product solutions

In March 2019, Hitachi Industrial Equipment Systems formulated its 2021 Mid-term Management Plan. The management policy position (and vision) was to create strong product solutions that contributed to the social innovation business by contributing to the creation of a foundation for technological innovation by optimizing production plans, supporting quality improvement, and reducing environmental impact as the social and environmental value of the business. The company's aim was to take on the challenge of becoming a top global player.
The company set a sales goal of 310 billion yen and a global business ratio of 42% for fiscal 2021, and high target of achieving 400 billion yen and a global business ratio of 50%.

There were three specific strategies, including:

Expansion of global priority businesses (air compressors and marking)

Air compressors and marking as the engines of growth and profit generation, respectively, with recurring business strengthened through connectedness.

Strengthening of solutions and IoT product business

Create new businesses for growth in solutions, locations and communications, and drives and automation, and expand IoT business from production to solutions.

Stable growth in core businesses

In power substations and distribution, clean air equipment, water pumps and crane systems businesses, cash would be generated to fund investments for growth through expansion of domestic businesses having a high market share.
Also cited as key focus areas were IoTization, digital solutions, automation and labor saving (robotics solutions), rentals and leases (assetless services), energy saving, higher efficiency, cleaning, and traceability/security.

Expansion of global priority businesses

The 2021 Mid-term Management Plan designated air compressors and marking as global priority businesses.
With a focus on becoming the world's second-largest compressor manufacturer and achieving over 140 billion yen in sales in fiscal 2021, the company leveraged the synergy between the growth of Sullair's business and Hitachi. Air compressor manufacturing capacity was increased in North America by expanding Sullair's Michigan City plant in October 2019. HIES and Sullair embarked on a joint development initiative to introduce top-tier products. The result would be the securing of a leading position in the global market for oil-free compressors. Moreover, the company would also make a robust entry into the European market via M&A strategies, explore emerging markets such as India and Myanmar, and optimize production bases in China. There would also be an expansion of operations in Australia, centering around Sullair.
In products, a new high pressure two-stage compression type vortex blower was launched in July 2019. Additionally, the G series, a new air compressor with improved basic performance and environmental resistance, was released in December.
In the marking business, the company strengthened its global business structure by reinforcing its sales system in Europe, including in Germany and the U.K., established an ink production system in China, and expanded its business in North America by utilizing Sullair's sales network. The goal was to create globally top-tier products, develop environmentally friendly inks, and expand its services through connected systems to become the world's No. 3 company in the field.
In May 2019, the company released a non-OPOSP black ink for inkjet printing on glass and flexible films, and in the same month launched the Gravis UX series of high-speed 1- and 2-stage inkjet printers.

Solution and IoT product businesses for generating new growth

Aiming for stable growth in core businesses

In the power substation and distribution business, the aim was to strengthen integrated management of the industrial substation equipment business, including the very-high-voltage business that was transferred from Hitachi, Ltd. In transformers, the focus was on attaining the top market share of 30% in Japan by expanding sales of amorphous transformers and hybrid vacuum circuit breakers (VCBs).
In November 2019, Hitachi Soe Electric & Machinery (HISEM) won a significant project. The Myanmar Ministry of Electricity and Energy ordered approximately 5,600 power distribution transformers. In products, in July 2019, HIES released a multi-circuit product that facilitated the maintenance and inspection of low-voltage insulation monitoring systems. HIES also launched the environment-friendly Zero series of “Kanade” super amorphous transformers. In November, the lineup of the HDR series of high-voltage single-element digital relays was expanded.
In the area of crane systems, clean air equipment and pumps, the company's aim was to achieve the top domestic market share in the hoist and clean air businesses, while in the wind and water supply pump business, it focused on capturing renewal demand through IoTization and expanding the after-sales business. In products, in August 2019, the company launched the PCJ-S88JSM4 air shower with a corrosion-resistant stainless-steel housing. October saw the release of a new model in the SCV series, a Class II biohazard control cabinet that complies with WHO guidelines.

The addition of Sullair contributed to a steady rise in sales and global business ratio

In fiscal 2019, the company turned its attention to expanding the service business in addition to the product business. This meant strengthening and expanding the digital solution business. In April 2019, KEC Corporation became a member of HIES, and work proceeded on establishing a system to develop the robotics solution business in an integrated manner. There was also a focus on establishing an integrated very-high-voltage to low-voltage operational system through the transfer of the substation business from Hitachi, Ltd.
Among the awards and honors received this year was the 67th Electrical Science and Technology Encouragement Award for the development and practical application of an industrial controller that enabled the collection of diverse data and the realization of smart factories.
In fiscal 2019, the addition of Sullair resulted in sales of 276.9 billion yen and helped raise the ratio of global business to 37.6%.

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The new coronavirus infection: Covid-19

In 2020, Covid-19 rapidly spread, creating a pandemic that had a significant impact on the global economy and society.
HIES set its sights on evolving into an innovation partner for the IoT era. As a basic policy, HIES worked to expand priority businesses by strengthening its business structure and investing heavily in growth areas. Meanwhile, HIES also improved profitability by implementing fixed cost measures and business restructuring reforms.

Global priority businesses aim for top tier ranking

In the air compressor business, priority measures included increasing the market share of stationary and portable models in the North American market, releasing oil-free compressors exclusively for North America, and strengthening the direct sales channel (transition to a five-company structure through acquisition of distributors). In the Chinese market, the company promoted compliance with the new energy-saving GB standard, expansion of the service business, and optimization of production bases.
In the domestic market, the company moved to expand sales by increasing market share through the introduction of next-generation models and by strengthening recurring business through cloud-based monitoring services.
Furthermore, to expand the Sullair business, the company sought to increase its market share by introducing new products and expanding sales of oil-free portable models launched in January 2020 and oil-free models exclusively for North America launched in April.
In the Chinese market, starting in April, the company released products compliant with the new energy-saving GB standard and strengthened its approach to major customers. At the same time, the company expanded its distributor network and strengthened its after-sales business to acquire new customers in the rental, oil and gas, and food and pharmaceutical industries.
In October 2020, the new Sagami Works started independent operation, and in March, the Ebina Works was integrated. In January 2021, Sullair Taiwan was integrated into Taiwan Hitachi Asia Pacific Co., Ltd. In addition, the production operation of Shenzhen Sullair Asia Industrial (SSAI) was consolidated into Suzhou Sullair Air Equipment (SSAE) to improve production efficiency.
In the Marking System business, under the theme of taking on the challenge of becoming number two in the world, the company made multifaceted efforts to increase its scale by strengthening its business structure, creating globally leading products, enhancing ink products, expanding its service business by becoming more connected, and strengthening marking-based solutions.

Solution business centered on connectedness

Improving core business profitability

Performance slowdown due to global economic stagnation

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