Hitachi to move rail business to UK from Japan

 
Hitachi train Hitachi's transport businesses moving to the UK could pave the way for a jobs boost in the future

Related Stories

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.

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 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'

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.

"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."

The firm reported profits of 126 billion yen ($1.2bn; £725m) for the three-month period to 31 December 2013.

 

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

Comments

This entry is now closed for comments

Jump to comments pagination
 
  • rate this
    +26

    Comment number 484.

    Reading the posts here there seems to be a grudging reluctance, from some, to accept this for what it is. Obviously we would all like to see a British manufacturer but, as we don't have one, the people who will be employed and the peripheral benefits in the supply chain and local economy must surely be welcomed by even the most churlish? Increased tax take will help the economy

  • rate this
    -18

    Comment number 483.

    Don't fall into the trap that this is good news for the UK. It is a company that is Japan based and controlled. Yes they may employ staff here, but most managers and senior staff will either be home grown or imported Japanese. While this may appear a boost for UK economy, realities sometimes are hidden in the small print. I work for a Japanese company and seniors are Japanese and on secondment.

  • rate this
    +73

    Comment number 48.

    Great news from Hitachi , but don't set up your head office in London.

    There are other areas within the UK.

  • rate this
    +124

    Comment number 34.

    Great that Hitachi has confidence in the UK. What a pity UK banks/companies continue to farm-out their call centres to India to appease the shareholders and save a few £s (ignoring the numerous complaints of the communication problem)

  • rate this
    +91

    Comment number 15.

    With the north easts reputation in Japan sky high due to the excellent work ethic and employee relations the Nissan plant in Sunderland has, and government friendly policies, this really shows the way forward.

 

Comments 5 of 6

 

More Business stories

RSS

Business Live

  1.  
    08:13: Watch out
    watch

    Technology fans will be watching the Mobile World Congress, which kicks off in Barcelona today, for the latest gadgets. Manufacturers seem determined to get us to buy a smartwatch. Apple and its rivals such as Samsung are trying to make the things prettier and more useful, AFP reports, having interviewed various analysts. Will you be tempted?

     
  2.  
    07:59: Trinity Mirror
    Mirror.co.uk

    Trinity Mirror will start paying a dividend for the first time since 2008 - of 3p a share - as pre-tax profits rose 1% to £102.3m for 2014, the Daily Mirror publisher said. However, print advertising revenue fell 14.1% in the second half of the year as supermarkets cut their spending.

     
  3.  
    07:45: Thorntons
    choc

    A "mixed performance" from Thorntons, chief executive Jonathan Hart tells investors. International sales rose by 19.9% to £5.4m in the first half of the company's financial year, but UK commercial sales melted away by 12.4% to £54.7m. Sounds more like a pick 'n' mixed bag to us...

     
  4.  
    07:32: Nationwide house prices
    For sale sign

    House prices fell by 0.1% in February, according to Nationwide - the first decline in five months, since September. That brought the annual rate of price rises to 5.7% compared with 6.8% in January - a sharper than expected slowdown.

     
  5.  
    07:16: Lib Dems Norman Smith Assistant political editor, BBC News
    Lib Dems

    The Liberal Democrats announce the first of many proposed tax rises today as part of their vow to pay off the deficit by 2018 by increasing the tax take rather than cutting spending further. Norman Smith tells Radio 4's Today programme that banks would have all the cuts in corporation tax since 2010 wiped out in a move that would generate about £1bn for the public purse. However, the Lib Dems still need to raise a further £7bn or so to make their sums add up, he adds.

     
  6.  
    07:02: Buffett letter
    bricks

    A quick reminder of what Mr Buffett's company owns. Among other businesses, Berkshire Hathaway owns about half of Heinz, engine oil firm Lubrizol, clothing maker Fruit of the Loom, the pleasingly named Acme Brick company and private plane operator NetJets. He also owns stakes in Mars, Coca Cola and American Express.

     
  7.  
    06:50: Bank shares BBC Radio 4

    David Cumming, head of equities at Standard Life, tells presenter Simon Jack on Today there is a "lot of noise" around banking stocks given the regulatory pressure the sector is now under, meaning they have a "higher than average risk profile". He also thinks the FTSE 100 will crack the 7,000 mark in the next few weeks as the economy continues to improve.

     
  8.  
    06:37: East Coast trains Radio 5 live
    train

    The East Coast rail route between London and Scotland has returned to private hands after more than five years in the public sector. David Horne of Virgin Trains East Coast is on 5 live. He says Virgin has done a good job with the West Coast line. National Express took over the line during a recession, so starting a franchise now should work better for Virgin, Horne adds.

     
  9.  
    06:24: Market update

    China's decision to cut interest rates over the weekend - the second reduction in four months - in a bid to ward off deflation has boosted stock markets in Asia today, with Sydney up 0.5% as mining companies bounced higher, while the Nikkei in Tokyo and the Shanghai Composite were both 0.3% higher.

     
  10.  
    06:11: Buffett letter Radio 5 live
    warren

    Sue Noffke, fund manager at asset manager Schroders, is 5 live's markets guest. Billionaire investor Warren Buffett sent his annual letter to shareholders on Saturday, summing up his 50 years building one of the planet's biggest companies. Because he behaves more like an owner than an investor, "he has had a longer-term investment horizon" than other investors, says Ms Noffke.

     
  11.  
    06:02: Software security Radio 5 live

    Online security firm AVG's chief executive Gary Kovacs is on 5 live speaking from Barcelona's Mobile World Congress tech show about security breaches. The internet has "only been around for 20 years," so securing the place is now a priority, he says. A podcast is now on the website.

     
  12.  
    06:01: Chris Johnston Business reporter

    Good morning! Get in touch via email bizlivepage@bbc.co.uk or on Twitter @BBCBusiness

     
  13.  
    06:00: Howard Mustoe Business reporter

    Good morning everyone. Welcome to Monday. The UK government has said it will block the sale of 12 North Sea oil and gas fields to Russian billionaire Mikhail Fridman after concerns about the effect of "possible future sanctions". Stay tuned for more of the best business news.

     

Features

  • A very clever little girlBrain gain

    Why are people getting better at intelligence tests?


  • Don Roberto Placa Quiet Don

    The world's worst interview - with one of the loneliest men on Earth


  • A reveller attends celebrations to mark the 450th anniversary of the city of Rio de Janeiro - 1 March 2015Partying in the streets

    Rio de Janeiro marks 450 years since it was founded


  • BeefaloBeefalo hunt

    The hybrid animal causing havoc in the Grand Canyon


From BBC Capital

Programmes

  • BatteriesClick Watch

    More power to your phone - the lithium-ion batteries that could last twice as long

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.