/ 20 April 2009

Hitachi may seek public funds

Japanese high-tech giant Hitachi may seek a government loan to help it cope with massive losses caused by the economic downturn, its new president said on Monday.

Hitachi, which is bracing for an annual loss of about $7-billion, is considering applying for a state-sponsored revitalisation programme, Takashi Kawamura told a news conference.

No firm decision has been made yet, a company spokesperson said.

The global economic downturn has inflicted heavy damage on Hitachi, which is cutting up to 7 000 jobs and has forecast a $7,1-billion net loss for the financial year which ended last month.

Hitachi said in March that it was replacing its president and splitting off its consumer electronics and automotive systems businesses as it seeks to recover from the heavy losses.

It is not the only Japanese company considering applying for public funds.

Troubled chip maker Elpida Memory has also said it may apply for government aid under the revitalisation scheme, which is currently being discussed in Parliament.

Under a separate scheme, the government has already allowed the state-backed Japan Bank for International Cooperation to lend to Japanese companies struggling to raise funds during the credit crunch. — Sapa-AFP