United Against Nuclear Iran (UANI) on Thursday announced that Japanese technology conglomerate Hitachi has decided to end its business in Iran. Following discussions with UANI, Hitachi this week informed UANI that it "has stopped all new business with Iran and is in the process of winding down contracts pre-existing our policy directive to end all new business." (UANI Press Release, "UANI Applauds Hitachi for Ending Its Business in Iran, Following Discussions with UANI", 12/1/2011)
Hitachi has installed ten highly advanced H-25 gas turbines since 2007 (Hitachi Website. “Thermal Power Systems: Experience”) and over 17 induction motors for industrial plants in the Iranian energy sector since 2006. One of the end-users for these induction motors was the Arak Petrochemical Corporation, a company listed by the British government as an entity of potential concern for WMD-related procurement. (Hitachi Website. “Induction Motor. Supply Record: Iran”; Iran Watch. “Arak Petrochemical Corp”)
Hitachi has provided the Ghadir Urea and Ammonia Petrochemical Company (“Ghadir”) with seven induction motors since 2008. Ammonia and urea both have widely recognized military uses. Ammonium nitrate fertilizer, for example, “is used to make 95% of the bombs in Afghanistan (Global Security. “Explosives– Ammonium Nitrate”). The Iranian government’s National Petrochemical Company owns a 48 percent share of Ghadir and has also been listed as an entity of potential concern for WMD related procurement (Iran Watch. “National Petrochemical Company”).
Hitachi's subsidiary, Hitachi Construction Machinery Middle East, published an article about its dealers on its website, in which it discusses Iran-based Touranto Co P.J.S, a “privately owned company (that) supplies earth moving/material handling machinery and accessories to America, Asia and Europe from leading manufacturers such as Bobcat, Terex, Indeco, Montabert, and of course Hitachi” (Hitachi Company Website).
In 2010, Hitachi Construction Machinery Middle East hosted a seminar with Touranto employees to increase product support revenue
Hitachi global website lists Parkish Co. in Tehran as a service center (Hitachi Global Website).
In a 2007 Correspondence with the SEC, Hitachi said the following (SEC correspondence with Hitachi, 3/30/2007):
"We have de minimis contacts in each of the five countries, Iran, the Sudan, Syria, North Korea and Cuba, designated as state sponsors of terrorism by the U.S. State Department. Total revenues received from all of the five countries combined were approximately ¥10 billion ($84 million), ¥8 billion ($67 million) and ¥4 billion ($37 million) for the years ended March 31, 2006, 2005 and 2004, respectively, which constitute approximately 0.1%, 0.09% and 0.05% of our consolidated revenues of respective fiscal year. We do not believe that the operations, either individually or in the aggregate, constitute a material investment risk to our security holders.
Revenues to these countries primarily comprise maintenance of thermal power plants, sales of turbo compressors for oil refining plants, induction motors for industrial plants, construction machinery, flat panel TVs and DVD cameras. In the year ended March 31, 2004, we recorded revenues amounted approximately ¥0.2 billion ($1.4 million) from sales in North Korea, which represent sales by Hitachi, Ltd. of nuclear power equipment through the Korean Peninsula Energy Development Organization, a multi-lateral organization established by the U.S., South Korea and Japan, following the agreement between the U.S. and North Korea aiming to freeze and ultimately dismantle North Korea’s nuclear program.
We have no assets or liabilities in any of these countries. Revenues during these periods were derived from sales to unaffiliated third parties by Hitachi, Ltd. and certain of our subsidiaries. The sales into these countries were immaterial to each of these entities.
We anticipate that our sales into the aforementioned countries will not change significantly in the near future, unless there is a dramatic change in the political and security climate in these countries. Due to the immaterial amount of sales into these countries both individually and in the aggregate, we do not believe that these operations constitute a material investment risk to our security holders."