Hitachi Initiates Fiber Optic Components Unit

TOKYO, Sept. 21 -- Hitachi Ltd. is relocating its Fiber Optic Components Business Unit to OpNext Japan Inc., a subsidiary of recently developed US company OpNext Inc. Hitachi's fiber optic unit was previously part of the Hitachi Telecommunications & Information Infrastructure Systems Group.
Under terms of the agreement, Clarity Group, an equal partnership between Clarity Partners, a Los Angeles-based private equity firm, and Marubeni Group, a Japanese-based trading house, will invest up to $450 million in OpNext. OpNext will use the money to improve its worldwide operations, including its R&D program, manufacturing capability and its sales and marketing department.
To create this new company and to partner with the expertise and resources of Clarity Group allows us to expand globally and to enhance our position as a world leader in the fiber optic business, said Etsuhiko Shoyama, President of Hitachi. We are implementing our Medium-term Business Plan, the 'i.e.Hitachi Plan,' that we established last autumn. We are prioritizing management resources to achieve a high-profit structure and the fiber optic component business is one of our most important and core businesses. This partnership is the right step in the best direction.