Hitachi plans to establish a new company in Europe to incorporate all activities for air conditioning products, including sales, manufacture and service operations across the European market from 1 April, 2012.
The new company will be called Hitachi Air Conditioning Europe SAS.

Hitachi and Hitachi Appliances, Inc., which operate the air conditioning business in the Hitachi Group, will reorganise the air conditioning business in Europe in a bid to strengthen its operation base in this market with a view to global growth for the company.

Previously, Hitachi's air conditioning business operated as two separate entities in Europe with manufacturing based in Barcelona, and sales, marketing and other operations run from the central office in Velizy, Paris with additional sales offices covering major European territories.

The new Hitachi Air Conditioning Europe company will comprise these different operations under one management and leadership team, 'providing a very stable platform from which to grow Hitachi's market penetration and share across a wide spectrum of products'.

Kenichi Munakata, president of the newly formed Hitachi Air Conditioning Europe SAS, said: 'The creation of Hitachi's new company in Europe is proof of the singular vision guiding our air conditioning business globally. For Europe, it represents a considerable investment and highlights our commitment to the European market as a whole. Whilst the operations will not change from a geographical standpoint, this unification of our businesses will deliver further benefits to ultimately leverage the economies of scale and scope that such a change will deliver.'

David Oldroyd, vice president and managing director of Hitachi Air Conditioning Europe SAS, said: 'Moving to the new business structure will bring great benefits not only for our own organisation, but especially for our partners, distributors and customers. The change will enable Hitachi to be the leading support organisation, strengthening localised product development and production. In order to develop new and exciting products, we are looking forward to strengthening our product development team in Europe.'

Hitachi and Hitachi Appliances are conducting similar strategic reorganisations in theIndian and Chinese air conditioning business, pursuing a strategy of 'globalising n through localisation'.