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The integration of the two companies businesses will commence in phases from October 2024.
Japan’s Mitsubishi Electric has announced an agreement to transfer its Nagoya Works distribution transformer business to Hitachi Industrial Equipment Systems.
The move involves the transfer of assets and operations related to development, design, manufacturing, sales and maintenance of the distribution transformer business, pending approval from the relevant authorities.
The integration of the two companies’ businesses will take place in phases from October 2024, with the final transfer completed by 1 April 2026.
Hitachi Industrial Equipment Systems president and CEO Yasuhiro Takeuchi stated: “The desire to contribute to Japan’s carbon neutrality in 2050 is behind this integration.
“Hitachi Industrial Equipment Systems globally provides industrial equipment that supports social infrastructure and manufacturing, and transformers are indispensable products for building a greener and more intelligent domestic power transmission and distribution network in Japan.
“We are confident that through a steady integration process, we can contribute to realising the sustenance of society within [the] ‘planetary boundary’, which is the target of the Hitachi Group.”
The transfer will not include transformers manufactured at Mitsubishi Electric’s transmission and distribution systems centre at its Ako factory.
Hitachi Industrial Equipment Systems will benefit from an expanded product line-up, which will now include highly energy-efficient and eco-friendly transformers.
The company plans to accelerate the growth of grid-edge solutions that focus on power distribution systems within the domestic market.
Mitsubishi Electric plans to concentrate on expanding its factory automation systems business.
Mitsubishi Electric executive officer Toshie Takeuchi stated: “Starting in 1952, the Nagoya Works distribution transformer business has over 70 years of production experience.
“We are pleased that Hitachi Industrial Equipment Systems will inherit our technology that has been cultivated over many years, as it can contribute to the development of the distribution transformer industry.
“We will gradually proceed with the business integration while continuing our supply to the market. In the future, we will focus on expanding the factory automation systems business and our circular digital engineering business.” |
