Hitachi eyes EUR 4.5 bn in annual railway business sales

Japanese company Hitachi will aim to boost annual sales at its British-based railway business 1.5-fold to around 600 billion yen (USD 4.5 billion) as early as possible and to 800 billion (EUR 6 billion) in the future, as it seeks further growth in the European market, Hitachi President Toshiaki Higashihara said.
Hitachi is expected to complete the acquisition of the railway vehicle and signal businesses of Italy’s Finmeccanica S.p.A by the end of the year in a deal that would bring their combined annual sales to around 400 billion yen (EUR 3 billion) a year. The Japanese conglomerate has been focusing on the railway business in Europe as Japan’s shrinking population will mean less growth potential in the future. The latest deal with the Italian company will enable Hitachi to offer a wider range of services than just selling railcars.
Hitachi said in July it signed a contract with British railway firm FirstGroup plc to deliver 173 passenger train cars, and won another order for a traffic management system from Network Rail.