April 06, 2011

Hitachi Announces Effects of the Great East Japan Earthquake, and its Responses (4th Report)

Tokyo, Japan, April 6, 2011 – Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced the following information regarding the effects on the Hitachi Group of the Great East Japan Earthquake on March 11, and regarding the responses of Hitachi, as of April 6. Hitachi expresses deep condolences for victims of the earthquake and sincerely hopes for the earliest possible recovery in all regions involved.

Utilizing the Hitachi Group Headquarters for Post-earthquake Reconstruction and Redevelopment (led by Hitachi, Ltd. President Hiroaki Nakanishi) as its control tower, Hitachi is combining all of the Group’s resources in promoting the following activities aimed at achieving the fastest possible recovery in its damaged bases of operation.

1. Providing Support in Affected Regions
Up to now, the Hitachi Group has already decided to provide support with a total value of 750 million yen, including the provision of flat panel TVs, dry cell batteries, and Disaster Victim Support Systems* for local municipalities with no charge and others to aid victims of the disaster and to assist in recovery efforts. The Group will continue to offer additional support quickly, in response to conditions in the affected areas.

2. Status of Employees
Hitachi will continue confirming the status of Hitachi Group employees and their families who have been affected by the disaster.

3. Assistance at the Fukushima Daiichi Nuclear Power Station of TEPCO
The 24-hour Emergency Response Center for Nuclear Power was established at the Hitachi, Ltd. Head Office immediately after the earthquake struck on March 11. In addition to dispatching engineers from Hitachi to work on joint teams formed in collaboration with The Tokyo Electric Power Company, Inc. (TEPCO) and the Japanese government, a work team comprising about 370 engineers and other workers has been formed, and up to now about 300 employees have been dispatched to the site, where they are concentrating every possible effort into recovering electricity within the power station, assisting in the cooling of the nuclear reactor pressure vessels and pools for spent nuclear fuels, and draining the water out from turbine buildings and tunnels. Also, over 1,000 staff members within the Hitachi Group are providing support and assistance where it is needed, collaborating with General Electric Co., a partner of nuclear power systems business. Devoting all available resources of the Hitachi Group, Hitachi will continue to fully cooperate with TEPCO and the Japanese government in efforts to improve the situation, for example through technical support and procurement.

4. Assistance in resolving the power supply shortage
Immediately after the earthquake on March 11, the Emergency Response Center for Thermal Power was established at Hitachi, Ltd. to provide support in resuming operations at damaged thermal power plants. Up to now, about 300 engineers have been dispatched to the power plant sites. Hitachi continues to offer proposals for newand additional-installation of power-generating equipment, such as turbines, in response to requests from various electric power companies. Additionally, in order to prepare and resolve the electric power supply shortages, Hitachi operationalized its privately-owned electrical power facility to be able to respond to requests from power companies.

5. Status of Recovery at Business and Production Bases
Recovery operations are currently underway at the Group’s main production bases. At this time, main production bases are either partially or fully operational. In the Power Systems business, on March 29, production resumed with the exception of some production line at the Hitachi, Ltd. Power Systems Company, Hitachi Works (Hitachi-shi, Ibaraki Pref.), where mainly manufactures turbines and power generators. For gas and steam turbines for domestic and overseas customers, production resumed and recovered 90 percent of its production capacity in comparison with the capacity before the earthquake. Aiming to operate with full capacity at the end of April 2011, Hitachi is running an accuracy test for its production lines.

In the Information & Telecommunication Systems business, support staff have been dispatched from Hitachi bases across the country to affected regions, where they continue their efforts to recover customers’ systems.

In the Elevators and Escalators business, escalators and printed circuit board for escalators and elevators production partially resumed at the Hitachi, Ltd. Urban Planning and Development Systems Company, Mito Works (Hitachinaka-shi, Ibaraki Pref.). Hitachi is accelerating its initiatives to recover its full-scale production.

At manufacturing bases for automotive components where production had been temporarily suspended due to the effects of the earthquake, production operations partially resumed at Hitachi Automotive Systems, Ltd., Sawa Works (Hitachinaka-shi, Ibaraki Pref.) and Fukushima Works (Date-gun, Fukushima Pref.) on March 25, and both domestic and overseas shipments have begun. Hitachi also recovered most of its production lines in the week of March 28. Hitachi will continue to resume production on an increasing number of components, and to invest all its energies into ensuring a stable supply of products.