Hitachi Construction Machinery

Global

Basic Agreement Regarding the Hitachi Construction Machinery Operators Training Center Joint Investment Company

Tokyo, Japan May 31, 2019 —-OUTSOURCING Inc. (TSE:2427; “OS”), OUTSOURCING’s subsidiary PEO Co., Ltd. (“PEO”), and Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) today announced the signing of a basic agreement regarding the establishment of Hitachi Construction Machinery Operators Training Center Co., Ltd. (“Training Center”), a 100% wholly owned subsidiary of Hitachi Construction Machinery which implements skills training for construction machinery and other equipment, as a joint investment company for the purpose of developing and providing training programs to learn about all stages of ICT construction.

As a global and comprehensive personnel services company, the OS Group is decentralized by industry to combine performance leveling which is not susceptible to the trends of any particular industry with mobility while also possessing an extensive track record in the construction machinery field. In addition, the OS Group promotes IT and construction engineer training programs and not only has the industry’s largest technical personnel dispatching service with over 13,000 engineers but also possesses a high degree of experience and know-how in system engineering, robotics, and software development.

The Hitachi Construction Machinery Group globally provides a value chain which includes products, parts, and services for construction and mining machinery. Within Japan, the Hitachi Construction Machinery Group provides ICT construction solutions while offering personnel training services to the construction and civil engineering industries through the Training Center’s training business to help solve the issues of “safety improvement,” “productivity improvement,” and “lifecycle cost reduction” faced by the construction and civil engineering industries amidst the decrease in the production labor population and the aging of skilled engineers.

Currently, construction and civil engineering customers are starting various ICT construction initiatives. The introduction of ICT construction will require the acquisition of new forms of knowledge associated with ICT construction in  addition to previous knowledge and know-how.

In order to promote the introduction of ICT construction among customers going forward, the OS Group and Hitachi Construction Machinery decided that it was necessary to provide training which covers all stages of ICT construction together with training in construction machinery operation, and they are now starting a collaborative partnership by establishing the Training Center as a joint investment company. This collaboration will draw on the cultivated knowledge of the OS Group which extends from research and development processes to mass-production processes for the manufacturing industry and Hitachi Construction Machinery ‘s experience and know-how in providing products and solutions for ICT construction to develop and provide training which covers all stages of ICT construction from construction surveying to design and construction planning, construction, inspection, and data delivery in addition to the training provided by the Training Center.

In addition, the OS Group acquired an Australian subsidiary, which provides contracting and consulting services in the ICT field and operates a training school, and is promoting the maximization of synergy effects between its 148 overseas consolidated subsidiaries which includes an initiative to improve the technical skills of up to several thousand Australian engineers.

The Training Center already has a track record of training initiatives for foreign operators and also plans to expand overseas in the future to increase the safety of foreign laborers and for the sustained development of the training business which has provided the human resource development business to the Japanese construction and civil engineering industries.

Overview of the Training Center

Item Overview
Company name Hitachi Construction Machinery Operators Training Center Co., Ltd.
Location 9-3 Higashi-ueno 6-chome, Taito-ku, Tokyo
Representative President and Representative Director Shigenori Yamamoto
Business overview Provides construction machinery and other skills training courses, special education, safety and health education, and practical training such as crane licensing based on the Industrial Safety and Health Act
Capital 20 million yen (100% held by Hitachi Construction Machinery Co., Ltd.)
Established February 1995
No. of employees 92 (as of March 31, 2019)

Overview of the Hitachi Construction Machinery

Item Overview
Company name Hitachi Construction Machinery Co., Ltd.
Location 16-1, Higashiueno 2-chome, Taito-ku, Tokyo
Representative President and Executive Officer, CEO: Kotaro Hirano
Business overview Manufacturing , sales and service of construction machinery, transportation machinery, and other machines and devices.
Capital 81,576 million yen (as of March 31, 2019)
Established October  1970

Overview of the PEO

Item Overview
Company name PEO Co., Ltd.
Location Nagoya Mitsui Building Honkan 7F, 1-24-30 Meieki Minami, Nakamura-ku, Nagoya City, Aichi Prefecture
Representative President and Representative Director Yohei Nishimura
Business overview Worker dispatch business, fee-based employment placement business, outplacement business, system sales and rental business, and contracting business
Capital 50 million yen (100% held by OUTSOURCING Inc.) (as of March 31, 2019)
Established September 2014

Overview of the OS

Item Overview
Company name OUTSOURCING Inc.
Location 19F Marunouchi Trust Tower Main, 1-8-3 Marunouchi, Chiyoda-ku, Tokyo
Representative Chairman and CEO Haruhiko Doi
Business overview Domestic engineering outsourcing business, domestic manufacturing outsourcing business, domestic service outsourcing business, overseas engineering outsourcing business, overseas manufacturing and service outsourcing business
Capital 25,123 million yen (as of December 31, 2018)
Established January 1997

Schedule

Signing date of the basic agreement May 31, 2019
Signing date of the joint investment business agreement June 28, 2019 (planned)
Effective date of the joint investment business August 1, 2019 (planned)

Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.

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