Three companies, Hitachi, Ltd. (HIT: 38.03 0.00 0.00%), Mitsubishi Electric Corporation (MIELY: 0.00 N/A N/A) and Mitsubishi Heavy Industries, Ltd.(MHVYY: 0.00 N/A N/A), operating in the diversified heavy industry sector, are planning to collaborate for development of their hydroelectric power generation system operations.The agreement, still under discussion, entails the formation of an operational company, combining the marketing, servicing, engineering, development and design activity of the hydroelectric power generation unit of the three companies. Through this collaboration the companies intend to expand their hydroelectric power generation system business worldwide with a goal of supplying electricity without polluting the environment with excessive generation of carbon products.
Being a sustainable means of power generation, there has been a huge worldwide increase in demand of hydroelectric power generation system which is likely to soar further in future. In countries like Japan with a few constructions of new power stations the requirement of maintenance and renovation of existing stations will bring good business for the companies. Countries like China, Latin America and India with a number of unexploited large water bodies represent substantial opportunities for development of hydroelectric power generation facility.
The power generation sector is highly competitive with companies like ABB Ltd.(ABB: 17.69 0.00 0.00%), General Electric Co. (GE: 13.97 0.00 0.00%),Siemens AG (SI: 90.44 0.00 0.00%) providing excellent services worldwide. Through this collaboration, Hitachi, Mitsubishi Electric and Mitsubishi Heavy Industries will be able to combine all their technologies and ideas to better compete in the market.
Headquartered in Tokyo, Japan, Hitachi is a global leading provider of electronic products. The company generated approximately $96.4 billion revenue in 2009. Looking ahead, the company plans to focus on information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems.We currently maintain our Neutral recommendation on Hitachi.
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