Complementary portfolios and technology strengths to ensure continuity, enhance customer value and bring growth opportunities
In accordance with the agreement signed in December of 2018, Hitachi Ltd. and ABB Ltd announced last week that they have completed all required procedures and have formed Hitachi ABB Power Grids Ltd.
Hitachi has an 80.1 percent stake in this new joint venture entity and ABB holds the balance. The companies said that the business volume is approximately $10B USD.
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.
The joint venture brings together two respected energy companies to create a new global power leader, they said in the release.
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.
“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.
“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.”