2009 : 2009 New Year's Message from the President

Jan. 5 , 2009
Hitachi Plant Technologies, Ltd.
President and Chief Executive Officer
Masaharu Sumikawa

  I would like to take this opportunity to wish everyone in the Hitachi Plant Technologies Group a Happy New Year. As we are beginning a new year, I would like to make a brief statement.
  In order to implement the Group's recovery plan, we are restructuring and improving our management fundamentals. Thanks to the dedication and endeavors of so many of you, I believe we are making excellent progress.
  However, the severe financial crisis in the United States that began in the second half of last year is leading to a global recession. As a result, we expect the Group's operating environment to become extremely difficult this year. Despite this drastic change in the broad economic situation, we are on course to meet our earnings targets for fiscal year 2008 based on our progress in achieving standardization, and on the creativity, skill and sustained efforts of our employees. We intend to meet these challenges and expand our earnings in fiscal year 2009. I call on everyone to keep the following three points in mind as we continue to move ahead in our work.

  The first is: "Find what is essential and respond to changes."
  As is evident, the economic crisis may worsen, in scale and in scope. Even though the challenges faced in each of our business domains will vary, the problems we confront and the countermeasures the Group will have to take will not be significantly different from those at the time of previous recessions. We will have to form closer ties with our customers and work together so we can find solutions to their problems. The Group must view this challenge - to provide customers with solutions - as an opportunity.
  Making full use of our engineering, monozukuri (or manufacturing abilities), and project expertise, we have to put ourselves in the customers' shoes when we are working with them to better understand their problems. Hitachi Plant Technologies Group must position itself as the only business group in its field that can provide truly comprehensive support to its customers. In that regard we have an advantage as the Group has recently enhanced its corporate strengths and systems used to service and support customers. We have done this by continuing the drive begun last year to strengthen our management capabilities, by streamlining operations, raising efficiency, and cutting costs. It seems to me that we can best ride out this economic "storm" by pouring our energy into truly useful proposals that will help our customers' solve their problems and get through this crisis.

  The second point is "We must bolster our competitiveness by improving our core technologies."
  As you know, the Group is striving for greater competitiveness through restructuring and by adopting a "select and focus" approach to prioritized fields, accelerating globalization of operations, and expanding its service operations. Fortunately, the efforts we have made thus far in lowering costs and standardizing designs have brought us real benefits. Substantial results have also been obtained in several areas such as process compressors for the oil and gas industry; in our expanding sewage water treatment and recycling business, which makes use of compact membrane bio-reactors; and in ballast water purification systems that utilize our proprietary magnetic coagulation and separation process.
  We also need further progress in developing and supplying products and systems that contribute to environmental preservation and energy efficiency by improving and making new breakthroughs in our core technologies. Even in these extremely trying economic conditions, the Group's opportunities are expanding, as customer requirements in areas such as infrastructure development, improving efficiency and rationalizing operations continue. The Group must contribute to society by adopting the customer's point of view and making further improvements in core technologies and services. I am firmly convinced that we can realize these goals.

  The third point is "Develop strategic businesses."
  Thanks to everyone's hard work, we are entering new business fields and steadily expanding our global business operations. Developing new markets will not be possible by simply adding more project budgets. We have to set targets for strategic business expansion, and mount organized efforts to reach them. Creating budgets for doing this will mean new business opportunities. As a developing enterprise, this is a path we cannot avoid.
  For example, in China, Southeast Asia, India, and the Middle Eastern belt, we want to expand our business, including services, not just in a few key locations, but throughout each region. The Group has done the necessary preparation, including setting up regional offices. We must bear in mind the opportunities that await us will increase as we move ahead with standardization and raising our technologies to higher levels. The Group has built relationships with the right kinds of partners. Implementation of our plans is all that lies before us. After carefully analyzing the risks by WBS and also in accordance with export control regulations, we must accept the challenges involved in strategic business expansion.

  I have called on everyone to undertake various assignments. As I mentioned earlier, as we finish up a very challenging fiscal year 2008, a year in which the operating environment was extremely difficult, we must look ahead to making great strides forward in fiscal year 2009, which will be an important year for progressing our business. While we strive to make full use of the great potential we have, we can overcome the difficulties we will face if we develop new ideas and make every effort to move ahead in our work. Let's work shoulder to shoulder in the year ahead and do our best.
  Finally, I hope that this year will be a wonderful one for you and your families. Once again, I wish you all a Happy New Year.