Hitachi and ABB declare joint venture in Japan

• 9 years ago (2014-12-16)
• Junior Isles

Asia 892 North America 1021

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Switzerland’s engineering group ABB has agreed a joint venture with Hitachi to develop marketing strategies for high-voltage direct current (HVDC) power transmission equipment in Japan.

ABB said in a statement: “This is the first step of a strategic partnership between Hitachi and ABB to contribute to the evolution of Japan’s power network…”

The news comes as Japan’s electricity power generation and sales – traditionally monopolised by 10 regional utilities – have been partially deregulated with a view to totally liberalising them by 2016.

These developments are key to the Hitachi-ABB project, which looks to develop its position in the market of electricity transmission equipment.

The venture, subject to necessary approvals and statutory procedures, is expected to get underway in the coming months. Hitachi will take an equity interest of 51 per cent, while ABB will take the other 49 per cent.

The resulting new firm will, according to a joint statement, “be responsible for the design, engineering, supply and after-sale services related to technology used for transmitting electricity between two grid systems”.

By developing their relationship, Hitachi and ABB are also hoping to compete with overseas giants like US General Electric.