Revamp Boosts Hitachi's Automation Clout in Asia

Hitachi, Ltd. and Hitachi Industrial Equipment Systems Co., Ltd. will reinforce their automation businesses leveraging industrial robots and will establish Hitachi Automation, Ltd. on April 1. For that reason, they will integrate the operations and resources within the group companies and integrate the system integration (SI) business in Japan and countries in Southeast Asia.

Specifically, KEC Corporation will take the robotic SI business comprising assembly and conveyor lines for all kinds of manufacturers from Hitachi Industrial Equipment Systems. KEC is a subsidiary of Hitachi Industrial Equipment Systems handling robotic SI business mainly for the automobile industry.

robotic arms in a car plant

Integration Background

For the past few years, Hitachi’s Industry Sector has been reinforcing the robotic SI business. In 2019, Hitachi Industrial Equipment Systems acquired KEC and Hitachi’s Industry and Distribution Business acquired JR Automation. Furthermore, the Industry and Distribution Business also took Kyoto Robotics Corporation last year.

Accordingly, the reorganization will propel the integration of the robotic SI business into Hitachi’s Industry & Distribution Business Unit. As a result, Hitachi will provide solutions fused with digital technologies while expanding its ability to provide full turnkey solutions in collaboration with JR Automation. Under the new structure, it will contribute to increasing the value of the customer’s business by providing one-stop solution with operational technologies centered on robotic SI and IT.

Moreover, the Hitachi Group aims to be a global leader in the robotic SI business through JR Automation, which is developing business mainly in North America and Europe, Hitachi Automation, and Kyoto Robotics, which will be developing business in Japan and Southeast Asian countries.

Eyes Global Leader in Robotic SI

KEC has developed the robotic SI business for automobiles and other manufacturing workplaces for Japanese companies in Japan, South Korea, China, the United States, and India. It has proprietary knowledge of robotic SI technologies, especially in welding processes. Hitachi Industrial Equipment Systems develops the robotic SI business centering on assembly and conveyor processes in a wide range of business categories leveraging its control technologies, such as connected products.

Consequently, with the integration and reorganization, Hitachi Group aims to become a global leader in the robotic SI business with the expansion of the business.

As such, the move allows the company to Integrate resources including the robotic SI technical capabilities, expertise, and customer bases of KEC and Hitachi Industrial Equipment Systems.

Furthermore, this will also expand Hitachi Automation’s capabilities to provide full turnkey solutions in line building in Japan and Southeast Asian countries through a partnership with JR Automation

Accordingly, by placing Hitachi Automation under Hitachi’s Industry & Distribution Business Unit will enable Hitachi to provide “Total Seamless Solutions” for overall optimization. This will boost digitalization in manufacturing workplaces and management to contribute to increasing the value of the customer’s business.