Hitachi dips toe into China water business

Besides installing the system in co-operation with the state-run Chengdu Xingrong Group Co, Hitachi says the company hopes to win construction and maintenance orders for water supply and sewerage systems throughout the country.

The sewage purification system will use micro-organisms to remove the nitrogen from waste water, a method requiring a smaller capital investment than conventional systems.

China's rapid urbanization makes it difficult for existing water supply and sewerage systems to keep up with actual water and treatment needs.

Japan's Economy, Trade and Industry Ministry projects that China will become the world's largest water-related business market by 2025, accounting for about 15 percent of the global market, or about JPY12.4 trillion (USD151.8 billion).

Given this, Hitachi concluded it had to jump into the water-related business now to boost its operations in China.

Currently, water-related businesses undertaken by Japanese companies in China are confined to such fields as parts supply and investment by general trading houses, and lag far behind European water majors such as the French companies Suez S.A. and Veolia Water.

The Japanese government plans to boost its assistance for the export of infrastructure, including water-related businesses, as a key pillar of its growth strategy.

With this assistance in mind, Hitachi says it plans to step up efforts to win more orders for water-related projects not only in China but also in Southeast Asia and the Middle East.

Through such efforts, Hitachi aims to nearly double its sales in water-related businesses to about JPY200 billion (USD2.4 billion) in fiscal 2015 from JPY115 billion (USD1.4 billion) in fiscal 2009, sources said.