Hitachi and ABB announced today (July 1) the formation of a new joint venture (JV) called Hitachi ABB Power Grids Ltd, with a business volume of approximately $10 billion.
Hitachi has a 80.1 per cent stake in this new joint venture entity and ABB holds the balance, a statement said.The agreement to form the JV was signed in December 2018.
Toshikazu Nishino, Executive Vice President of Hitachi, is the Chairman of the new entity and Claudio Facchin the CEO. The new entity is headquartered in Zurich, Switzerland, and the current management team will ensure business continuity, it added.
“Hitachi’s leading digital technologies merged with world-class power grid solutions will help us to play an active role in the global transformation and decarbonization of energy systems for a sustainable energy future. Intelligent solutions for a more dynamic grid will also contribute to the UN’s Sustainable Development Goal 7 of ‘affordable, reliable and clean energy’,” said Toshikazu Nishino.
The statement said the joint venture brings together two highly respected companies to create a new global power leader. The alliance with Hitachi will facilitate expansion opportunities for the new entity in areas such as mobility, smart cities, industry, energy storage and data centers, besides providing financial muscle to support ambitious projects and enabling access to Japan, the third largest economy in the world.
“Synergies and access to new and growing markets provided by Hitachi will help take Power Grids to the next stage of its development, further strengthening its leading position,” said Timo Ihamuotila, CFO of ABB and Director of the Board of Hitachi ABB Power Grids. “Hitachi brings long-term commitment to the new entity and strengthens the existing business partnership between our companies,” he added.
“Combining our respective technology strengths will bring us new market opportunities and enable us to deliver greater customer value,” said Claudio Facchin, CEO, Hitachi ABB Power Grids. “We remain committed to powering good for a sustainable energy future, with pioneering and digital technologies, as the partner of choice for enabling a stronger, smarter and greener grid,” he added.—TradeArabia News Service