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Hitachi to move rail business to UK from Japan | Hitachi to move rail business to UK from Japan |
(34 minutes later) | |
Japanese electronics firm Hitachi says it will move its global rail business from Japan to the United Kingdom. | Japanese electronics firm Hitachi says it will move its global rail business from Japan to the United Kingdom. |
The manufacturer of the first bullet trains says it hopes the move will help it to expand the rail business to 4,000 workers from the current 2,500. | |
It hopes to increase revenue from 2bn to 3bn euros ($4bn; £2.5bn). | |
Last July, Hitachi won a £1.2bn deal to make the next generation of inter-city trains in Newton Aycliffe, County Durham, where it is building a factory. | Last July, Hitachi won a £1.2bn deal to make the next generation of inter-city trains in Newton Aycliffe, County Durham, where it is building a factory. |
That will initially employ 750 workers when it opens next year. | That will initially employ 750 workers when it opens next year. |
The move is an unusual one for a Japanese company, and puts it geographically nearer to its main train-building rivals, such as Siemens of Germany. | The move is an unusual one for a Japanese company, and puts it geographically nearer to its main train-building rivals, such as Siemens of Germany. |
The BBC's industry correspondent, John Moylan, also says it will boost Hitachi's British credentials in the wake of rows over rail contracts being awarded to foreign firms. | The BBC's industry correspondent, John Moylan, also says it will boost Hitachi's British credentials in the wake of rows over rail contracts being awarded to foreign firms. |
'Significant' | 'Significant' |
In a statement, the government described the move as a huge vote of confidence in Britain, its workforce and its rail industry. | In a statement, the government described the move as a huge vote of confidence in Britain, its workforce and its rail industry. |
Hitachi manufactures everything from nuclear power plants to construction machinery to televisions; its rail division is relatively small, employing around 2,500 of Hitachi's 326,000 workers. | Hitachi manufactures everything from nuclear power plants to construction machinery to televisions; its rail division is relatively small, employing around 2,500 of Hitachi's 326,000 workers. |
"Today's announcement is a significant sign of intent by Hitachi to grow its business in the rail market," said Alistair Dormer, chief executive of the global rail systems business. | "Today's announcement is a significant sign of intent by Hitachi to grow its business in the rail market," said Alistair Dormer, chief executive of the global rail systems business. |
"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." | "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." |
The firm reported profits of 126 billion yen ($1.2bn; £725m) for the three-month period to 31 December 2013. | The firm reported profits of 126 billion yen ($1.2bn; £725m) for the three-month period to 31 December 2013. |