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February 9, 2015

Hitachi Received Order for an Expansion Work Project to a Large-scale Sewage Treatment Facility in Vietnam's Ho Chi Minh City

Hitachi Received Order for an Expansion Work Project to a Large-scale Sewage Treatment Facility in Vietnam's Ho Chi Minh City

Ho Chi Minh City and Tokyo, February 9, 2015---Hitachi, Ltd. (TSE: 6501 / “Hitachi”) today announced that it received an order from the Urban Civil Works Construction – Investment Management Authority of Ho Chi Minh City in the Socialist Republic of Vietnam (“Vietnam”), for an expansion work project to a large-scale sewage treatment facility in the city. The ground-breaking ceremony to this expansion project was held at the Binh Hung Sewage Treatment Plant in Ho Chi Minh City on February 7. The order was awarded to a three-company consortium represented by POSCO Engineering & Construction, Ltd. (“POSCO E&C”), a major South Korean construction company, and comprising OTV, a subsidiary of the major French environmental services group Veolia Water Solutions & Technologies, and Hitachi. This project worth around 130 million US Dollars in total will be funded by loan assistance from the Japanese government.

As the largest city in Vietnam, Ho Chi Minh City has seen its volume of industrial and domestic wastewater surge in step with rapid industrialization and urbanization. Concerns that this surge could worsen the water quality of rivers and affect the sanitation and health of the residents are mounting, due to the inadequate development of sewage treatment facilities.

This project aims to improve Ho Chi Minh City’s urban and domestic sanitation by expanding the daily processing capacity of existing sewage treatment facilities from 141,000 m3 to 469,000 m3. The expanded capacity would be sufficient to meet the wastewater treatment needs of approximately 1.4 million people, and would make the plant one of the largest sewage treatment facilities in South East Asia.

Plans are currently under way for future sewage infrastructure development projects in Vietnam, and Hitachi will continue its participation in this business in the future. Hitachi aims to contribute to Vietnam’s development by putting in place water infrastructure and maintaining and improving Vietnam’s water environment.

Mr. Kunizo Sakai, Vice President and Executive Officer and President & CEO of Hitachi’s Infrastructure Systems Company said, “Hitachi is honored to be involved in the expansion work project to a large-scale sewage treatment facility in Ho Chi Minh City in collaboration with POSCO E&C and Veolia. Hitachi has an extensive track record and expertise in the delivery of water treatment plants throughout the world, and we look forward to contributing to the maintenance and improvement of the water environment in Vietnam by putting in place reliable water infrastructures.”

The expansion project in Ho Chi Minh City is the second large-scale project awarded to Hitachi and OTV, following orders received in 2014 for a 199,000 m3/d desalination plant and pre-treatment facilities in Basrah, Iraq, the largest of its kind in the country.

Looking ahead, to accelerate globalization, Hitachi will continue to leverage these sorts of frameworks to participate in water infrastructure projects, with demand expected primarily from the emerging countries.

Outline of Order

Outline of Order
Customer name Urban Civil Works Construction – Investment Management Authority of Ho Chi Minh City
Location Ho Chi Minh City, Vietnam
Details of order Expansion work on sewage treatment facilities (comprehensive order for civil, mechanical and electrical engineering work)
Contract commencement January 2015
Construction period Approx. 4.5 years
Total order amount Around 130 million US Dollars

About Hitachi Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society's challenges with our talented team and proven experience in global markets. The company's consolidated revenues for fiscal 2013 (ended March 31, 2014) totaled 9,616 billion yen ($93.4 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional materials & components, automotive systems, healthcare and others. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

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