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Hitachi Transport System

May 25, 2007

Opening of Distribution Center in Monterrey, Mexico

- Enhancement of operating bases in North America -

Hitachi Transport System, Ltd., which is developing a "System Logistics Services" (3PL) globally, in which it provides comprehensive logistics services for companies, announces the opening of Monterrey Distribution Center in northern Mexico to strengthen and expand System Logistics Services in North America.
Providing integrated logistics services including customs clearance, storage and transportation at the border between the U.S. and Mexico ("Cross-border Logistics Services"), we are strengthening automotive-related logistics services in Middle West as well as household appliances on the West Coast in North America. This operating base follows bases in Cincinnati and Laredo in Middle West that have been operated since 2005. Through VMI warehouse (*1) management and JIT (*2) delivery, we aim to provide automotive-related logistics services that connect 3 countries, Canada, U.S. and Mexico, in future.
We believe that we can contribute to customers' needs for an efficient Supply-Chain Management that responds to their global development because of our lots of know-how for System Logistics Services. Also, we lease the center from ProLogis, a provider of distribution facilities.

(*1) VMI warehouse: Vendor Managed Inventory warehouse / Inventory management of parts and supply for manufacturers.
(*2) JIT delivery: Just In Time delivery / Delivering only as needed, when needed.

Outline of the distribution center

Name Monterrey Distribution Center, Hitachi Transport System (America), Ltd.
Address Carr. Miguel Aleman Apodaca, NL Mexico
In Apodaca submarket, the primary industrial corridor in Mexico
Total floor area Approx. 8,200square meters (88,000sq.ft.)
Main products Automotive parts and so on
Operation schedule Go into operation from June 2007

the distribution center