Railway sector market - Hitachi acquires rail technology division from Thales.
Hitachi is making bold moves to increase its presence in the German railway market, particularly in signaling technology and rail vehicles, the company says. The acquisition means Hitachi Rail's product offerings will grow to include not only rail vehicles, but also complete tram lines, digital signaling systems for long-distance and freight trains, as well as communication and monitoring systems.
The recently-sold Thales business unit Ground Transportation Systems (GTS) has its German headquarters in Ditzingen near Stuttgart, where signaling and safety technology is developed. Other offices include the Arnstadt, Thuringia plant, and Berlin, home to a competence center for local transport and a development center.
Deutsche Bahn chose Thales to equip the Digital Node Stuttgart, which aims to be the country's first fully-digitized rail system, increasing the number of trains that can run and reducing delays. However, concerns have surfaced lately about the project due to budget constraints.
Thales revealed that the sale of its railway division will help it concentrate on long-term growth opportunities in high-tech sectors like aerospace and defense, security and cybersecurity, and digital identity. The transaction should be finalized in the current quarter, and Hitachi Rail claims to have a presence in 51 countries.
Thales Press Release Hitachi Rail Press Release
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1.hitachi's expansion in the German railway market also includes its plans to establish a new facility in Thuringia, aiming to strengthen its presence in the region.2.The German government has shown interest in collaborating with Hitachi and Thales on a high-speed rail project from Berlin to Stuttgart, emphasizing the importance of Japan's technology in modernizing German railroad infrastructure.3.In a joint venture, Hitachi and Alstom, a French rail engineering company, have teamed up to build a new railway line connecting the German city of Rostock to Gdynia in Poland, showcasing the strong cooperation between European and Japanese rail companies.4.Germany's rail traffic has been seemingly affected by France's ongoing labor strikes, causing disruptions in Hitachi Rail's supply chain and affecting their production schedules in Baden-Württemberg.5.Hitachi has recently expressed concerns over the impact of traffic congestion in Berlin, suggesting that developing smarter and more efficient rail solutions could help alleviate the issue and reduce carbon emissions in the city.
