Hitachi cuts costs with Taiwan buying boost

14 November 2011

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14 November 2011 | Adam Leach

Japanese electronics giant Hitachi is increasing procurement activities in Taiwan in order to cut costs, according to a statement.

The company, which manufacturers a variety of products including LCD TVs, refrigerators and hard disk drives, has committed to expanding procurement of flat panel and LED displays and other products in the country to the value of $2 billion (£1.25 billion). The deal, announced today, follows talks between a number of Japanese business leaders and Taiwan’s minister without portfolio, Yiin Chii-min. 

In a statement announcing the deal, the minister suggested that the impact of the earthquake in March, a high yen and recent trade agreements between the two countries had led many Japanese operations to modify sourcing in Taiwan. The statement, said: “Many Japanese enterprises have adjusted their strategies, increasing their procurement in Taiwan and hoping to co-operate with Taiwanese firms in developing new products for tapping the mainland Chinese market.”

The group will hold a supplier conference today and tomorrow at Nangang exhibition hall, where representatives from 10 of the groups that make up Hitachi will meet with local suppliers to discuss potential deals. Senior procurement officials from the group will also be outlining the group’s development strategy.

The Taiwanese delegation also confirmed that deals had been struck between the Taiwan Food GMP Development Association and Itochu Group, and a deal between the Taiwan Electronic Equipment Industry Association and the Oita LSI Cluster, an association of semiconductor companies. The deals will see new investment and market development through the new partnerships.

Taiwan has enjoyed improved trade prospects since joining the World Trade Organization’s Agreement on Government Procurement (GPA) in 2009. 

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