Hitachi Focuses On US Market Based On Biden's $2T Infrastructure Spend: FT - Hitachi (OTC:HTHIY)

Hitachi Ltd HTHIY President Keiji Kojima plans to ramp up digital talent-hiring from India to compete in the U.S. following a $9.5 billion deal to acquire software engineering company GlobalLogic, the Financial Times reported.
Kojima estimates a large part of industries, including manufacturing, to return to North America.
He assigned the next ten years as a decade of growth following almost completing its asset restructuring program.
Hitachi's U.S. focus follows years of efforts to transform the sprawling Japanese conglomerate into an IT and infrastructure specialist by merging and selling listed subsidiaries.
Hitachi will drive its U.S. investment following President Joe Biden's $2 trillion infrastructure plan rollout. Kojima mentioned U.S. semiconductor companies' partnerships.
In May, Hitachi announced that its subsidiary Hitachi High-Tech would establish a semiconductor research facility in Oregon.
North America is Hitachi's largest market outside of Japan, accounting for 13% of its annual revenue.
Hitachi acquired Michigan's industrial robotics integrator JR Automation for $1.4 billion in 2019. Hitachi aimed to increase revenue in the North American segment from ¥73 billion three years ago to ¥200 billion ($1.8 billion) in the current financial year.
Analysts estimate challenges in overseeing the expensive integration of GlobalLogic to expand Hitachi's software business while digitizing its hardware assets. The group's operating profit margin of 6% also remains low compared to global peers like Siemens AG SIEGY and ABB Ltd ABB.
Kojima plans to innovate Hitachi's products by using GlobalLogic's digital resources. Hitachi might carry out additional acquisitions in railway and healthcare businesses to fill digital capability gaps.
Price Action: HTHIY shares are up 0.73% at $116.51 on the last check Monday.

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