Plans shelved for new Hitachi plant

The report said Hitachi had been planning to form a joint venture with its Russian sales agent, TSC, since the middle of last year, with the aim of tapping an expected surge in demand from emerging economies.“There is no urgent need to boost capacity at the moment,” a company spokesman said. He said there had been cancellations of orders from small mining companies in Russia and eastern Europe since November, according to Reuters.The move to put off the construction of the Russian plant comes after Hitachi suspended its four-year capacity expansion program, which involved boosting output in Japan and in emerging economies with investment spending of 160 billion yen ($A2.7 billion) by March 2011.

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