Posted 20th March 2014 | 11 Comments
Hitachi to move global Rail headquarters to UK
JAPANESE engineering company Hitachi has announced that it is moving the global headquarters of its rail business from Japan to England.
The present head of Hitachi Europe, Alistair Dormer, is to be promoted to global CEO for rail on 1 April.
Hitachi intends to make Britain its base for entering the European rolling stock market, and trains for France and Germany may be assembled in County Durham in future, where Hitachi is currently building a plant for the British Intercity Express Programme. Trains assembled there are due to start entering service on the Great Western and East Coast Main Lines within the next three years or so.
The company is evidently moving its HQ to London to step up its competitiveness against the established European train builders such as Bombardier and Siemens.
Hitachi Rail has reported global turnover of 2 billion euros (£1.67 billion) but aims to increase that to 3 billion euros (£2.5 billion) in the next few years, while the job count is set to rise from 2,500 people now to 4,000 people in the next two and a half years
Alistair Dormer said: 'Today’s announcement is a significant sign of intent by Hitachi to grow its business in the rail market and I am excited by the level of trust placed in me to lead our growing business in this next phase of expansion. Both the UK and Japan remain important as markets for Hitachi Rail, and with our train factory in the North East of England now under construction, we will work to realise our export potential from the UK, expanding into Europe and emergent markets."
He will also lead a larger team. Hitachi Rail will deploy a global chief operating officer, a global chief strategy officer and other executives whose task will be to 'oversee and vigorously develop and advance global strategies for the rail systems business', the company said.
IHitachi revealed that Kentaro Masai will be appointed president and CEO of Hitachi’s Rail Systems Company to serve as the global chief operating officer with responsibility for 'strengthening ties with the Japanese Government and Japanese customers'. Shinya Mitsudomi, who is presently the chief strategy officer of Hitachi's Rail Systems Company, will be appointed global CSO at the same time. These additional changes also take effect on 1 April.
Mr Masai said: "We will vigorously push ahead with global business development in the rail systems business, where growth is expected. We will do so by harnessing Hitachi’s advanced rail systems technology, developed mainly in Japan over the years, and by further strengthening coordination with networks formed through our overseas businesses. We will also work to expand the rail systems business by bolstering our domestic business base and steadily promoting new business development. Working together with the Global CEO and other executives, I am committed to growing Hitachi’s rail systems business into a globally competitive enterprise."
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
Bob , London
The reason why a Japanese company would choose London is startlingly obvious. Heathrow. There is no point sticking it in the sticks for cheap rent. Far from it being a decision to be biased against the rest of the country logic dictates the execs aren't going to want to be on a motorway or a train when a quick limo ride to the office is on offer.
Not until the year 2345 when HS2 finally opens will the London bias have a chance to be broken.
Steve, Nottingham
OK, so they have moved a few marketing types to London. The engineering and development will still be done in Japan.
Tim, Devon
Don't get too excited. The rest of Europe will still continue to give new orders to their own nation's manufacturers.
George Davidson, Newport
Yet another company HQ to be set up in London. Why can't companies set up their headquarters in other British cities? No wonder we have such a concentration of wealth in the London area. Companies would also get cheaper office accommodation outside the capital.
MikeyB, Liverpool
Whilst this sounds very good news, we should wait and see whether Hitachi actually employs British management and designers or whether they will merely transfer their own staff from Tokyo. With regard to possible orders from Continental railways, I can foresee the EU advising it's members to boycott Hitachi until European companies are given full access to the Japanese rail market.
John Gilbert, Cradley
Further to Mick Rogers' comment, it would seem that a continental gauge route at least to Newcastle as the nearest port, in order to export Hitachi rolling stock to Europe is needed. Needless to say this would put Derby at a disadvantage.
Melvyn Windebank, Canvey Island, Essex
The news Hitachi is setting up an HQ here shows the benefit of our continuing to be a member of the EU and a doorway to wider orders in Europe !
Whilst more orders may lead to hitachi expanding production to produce more of its trains here instead of building them in kit form in Japan and shipping them over to just be assembled here.
It also demonstrates how we need a government that leads in Europe the fight to get these products built in the EU instead of one too concerned with articles no one is interested in outside the political elite!
Mick Rogers, Cardiff
Good news indeed, but would the lack of a continental gauge route through to the Channel Tunnel mean that anything that Hitachi UK manufactures (or assembles) for a European customer at their Newton Aycliffe plant has to be transported by road rather than rail?
Chris, London
Before people get too excited this is not their Japan operation, and their non-Japan rail business at the moment doesn't extend much beyond the orders they've won here. Ergo, basing such operations in the UK kinda makes sense.
james Palma, London
Fantastic news! lets hope it goes well and Hitachi expand their Newton Aycliffe factory to give jobs to local people desperately in need of them!
No offence to people from Europe coming to Britain for work, but the jobs should go to the current incumbant British residents of the north-east first and foremost.
Tony Pearce, Reading
Amazingly good news. They obviously think that Europe is going to be a big market for new trains. Apart from the UK have they any other big orders from EU rail companies ? But this 'good news' may undermine Bombardier at Derby's competitiveness.