Hitachi Seen Taking Full Stake in Medical Equipment Unit
Tokyo, June 7 (Jiji Press)--Major Japanese electronics and machinery company Hitachi Ltd. <6501> is looking at making medical equipment and semiconductor production machine maker Hitachi High-Technologies Corp. <8036> a fully owned subsidiary, it was learned Friday.
Hitachi currently owns a 51.7 pct stake in Hitachi High-Technologies.
The envisaged additional share acquisition is part of Hitachi's medium-term business plan through fiscal 2021 to reorganize its group companies to improve the profitability of its medical business, informed sources said.
Under the plan, Hitachi aims to raise its medical business sales to over 400 billion yen and operating profit margin to over 11 pct by fiscal 2021, which ends in March 2022.
Hitachi's sales and operating profit margin of its medical business in the fiscal year to March 2019 were about 360 billion yen and 9.2 pct, respectively.
[Copyright The Jiji Press, Ltd.]