Hitachi ABB Power Grids commences operations in $10 billion joint venture

• 4 years ago (2020-07-02)
• David Flin

Europe 1068 Transmission 181

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Hitachi and ABB have announced the completion of all the required processes to allow for the formation of Hitachi ABB Power Grids, in accordance with the agreement signed on 17 December, 2018. Hitachi has an 80.1 per cent stake in the new joint venture, which has a business volume of approximately $10 billion. ABB holds the balance.

Toshikazu Nishino, Executive Vice President of Hitachi, is the Chairman of the new entity, and Claudio Facchin is the new CEO. The new entity has its headquarters in Zurich, Switzerland.

Nishino said: “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 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.”

The joint venture will facilitate expansion opportunities in areas such as mobility, smart cities, industry, energy storage, and data centres. It will also provide a strong financial basis to support ambitious projects.

Timo Ihamuotila, CFO of ABB and Director of the Board of Hitachi ABB Power Grids, said: “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. Hitachi brings long-term commitment to the new entity and strengthens the existing business partnership between our companies.”

Claudio Facchin, CEO of Hitachi ABB Power Grids, said: “Combining our respective technology strengths will bring us new market opportunities and enable us to deliver greater customer value.”