Power pairing: JV a big boost for sustainable energy
08 July 2020 | Web Article Number: ME202019609
Hitachi has completed the merger of its joint venture power business unit with ABB Power Grids.
This follows an agreement signed in late 2018. Hitachi has an 80.1% stake in this new joint venture entity, which has a business volume of approximately US$10 billion. ABB holds the balance.
Toshikazu Nishino, Executive Vice President of Hitachi, is the Chairman of the new entity and Claudio Facchin the CEO. It is headquartered in Zurich, Switzerland. The current management team will ensure business continuity.
“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 decarbonisation 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 Nishino.
He added that the alliance would present expansion opportunities for the new entity in areas such as mobility, smart cities, industry, energy storage and data centres, 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.”
Facchin said, “Combining our respective technology strengths will bring us new market opportunities and enable us to deliver greater customer value. 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.”