Tokyo: Hitachi Zosen Corp will invest Y10 billion boosting engine productivity, on a par with the massive investment it injected in 1996-1997 when the Ariake Machinery Works (now the Ariake Works of Hitachi Zosen Diesel & Engineering Co.) was built. Hitachi will utilize the funds obtained from the issuance of convertible bonds with stock warrant, reports the Kaiji Press.
About Y9 billion will be invested in equipment for Hitachi Zosen Diesel & Engineering (HZ D&E) engaged in the production of large-size (with cylinder bore of 700 mm or more) and medium-size engines (460-600 mm). Hitachi plans to build a 6,000-sq.m machinery plant and 8,250-sq.m assembly/shipping factory at the Ariake Works.Further, a new processing base will be set up and welding/machining equipment for medium-size engines will be introduced at Hitachi Zosen's Sakai plant.
The series of equipment investments are scheduled to be completed within fiscal 2009. From the current annual production capacity of about 50 engines of 1 million hp, the company will boost the output to 55 units in fiscal 2008, 70 units in fiscal 2009, slightly above 80 units in fiscal 2010 and 90 units in fiscal 2011. It will also increase the number of its employees to 360 by 2012, from about 250 employees at present. [17/10/07]
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