Manufacturing News

Hitachi Will Expand Procurement in Taiwan

Under the mediation of Yiin Chii-min, minister without portfolio, Hitachi Group will expand for the first time its procurement in Taiwan to a level no less than US$2 billion a year, especially for FPD (flat panel display) and electronic products.

Hitachi Group will hold suppliers' procurement meeting for its international procurement office (IPO) at Nangang exhibition hall today and tomorrow (Nov. 14, 15), when representatives of over 10 member companies of the group will meet with local suppliers for discussing procurement projects. Ranking procurement official of the group will attend the meeting and announce the group's development strategy. This is a major achievement of Yiin Chii-min, who led a number of delegations to push industrial cooperation between Taiwan and Japan in recent months.

Hitachi is one of Japan's 10 leading trading houses. During the suppliers' meeting, Hitachi officials will explain the company's procurement policy in Taiwan in the next two years, according to which its local procurement value will be increased and the procurement scope will the expanded to cover the four additional items of heavy electric machinery, auto parts, machinery equipment, and materials. Eighty-eight Taiwanese firms will attend the meeting.

In the past, Hitachi's procurements in Taiwan focus on consumer electronics and information communications technology products, such as air conditioners, TV panels, mobile phones, and automatic vehicles. Hitachi has 18 branches in Taiwan, with annual revenue totaling US$3.3 billion.

Yiin Chii-min expressed yesterday (Nov. 13) that due to the March 11 earthquake, the appreciation of the Japanese yen, and the effect of cross-Taiwan Strait Economic Cooperation Framework Agreement and Taiwan-Japan investment protection agreement, many Japanese enterprises have adjusted their strategies, increasing their procurement in Taiwan and hoping to cooperate with Taiwanese firms in developing new products for tapping the mainland Chinese market.

The stepped-up procurements in Taiwan will benefit such Taiwanese suppliers as Chimei Innolux for FPD, Compal for LCD TV, Delta Electronics for LED lighting, and Prime View for e-paper.

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