Hitachi Chemical to sell electronics components business to Chinese peer
TOKYO, NNA - Hitachi Chemical Co. will sell off its electronic components business to a Chinese sector peer for an undisclosed sum in April amid an intensified industry competition, the Japanese electronics materials and components maker said on Tuesday.
Nantong Jianghai Capacitor Co., a supplier of condensers, in the eastern coastal province of Jiangsu will take over Hitachi Chemical’s businesses of condensers and evaporated films used for a wide range of products such as home appliances, a spokeswoman at Hitachi Chemical told NNA on Wednesday.
It has been hard to make a profit in the condenser business due to intensified competition from Chinese companies, Hitachi Chemical said in a statement.
The deal comes as Showa Denko K.K., a Japanese maker of chemical and electronics materials, plans to take over Hitachi Chemical for about 960 billion yen ($8.8 billion) in May. Hitachi Ltd. owns a 51.2-percent stake in Hitachi Chemical.
Hitachi Chemical’s condenser and evaporated film business, including that of Hitachi AIC Inc., its 100 percent manufacturing subsidiary, generated revenue of about 8.8 billion yen in the fiscal year that ended in March 2019. The deal is expected to have little impact on the company’s earnings in the current fiscal year ending in March.