On July 1, Hitachi LTD. and ABB LTD jointly announced the establishment of Hitachi ABB Power Grid Co., LTD. Hitachi will hold 80.1 per cent of the new venture, with ABB holding the rest. The joint venture aims to create a new leader in the global power industry.
Toshikazu Nishino, Hitachi group executive vice-president, will become chairman of the new company and Claudio Facchin will become chief executive. The company will remain headquartered in Zurich, Switzerland, and the current management team will ensure business continuity.
“Hitachi’s leading digital technologies, combined with ABB’s world-leading grid solutions, will help us play an active role in the transformation and decarbonization of the global energy system, shaping the future of sustainable energy,” Said Mr. Nishino. At the same time, intelligent solutions for changing power grids will contribute to achieving the ‘affordable, reliable and sustainable clean energy’ stated in the UN Sustainable Development Goal 7.”
The combination with Hitachi will enable the new company to further expand business opportunities in transportation, smart cities, industrial, energy storage and data centers, obtain financing support for major projects, and gain access to the world’s third largest economy, Japan.
“The partnership with Hitachi will generate synergies to help the grid business enter emerging and developing markets and further consolidate the company’s leadership position by taking it to a new stage of development,” said Timo Ihamuotila, chief financial officer of ABB Group and a member of ABB’s board of Directors. “Hitachi is committed to supporting the development of the new company over the long term and to strengthening the existing business relationship between the two parties.”
“By integrating our respective technological strengths, we will embrace new market opportunities and create more value for our customers,” said Qin Fang, CHIEF executive of ABB Power. “As a preferred partner in building a stronger, smarter, and greener grid, we remain committed to shaping the future of sustainable energy through technological innovation and digitalization to energize the world.”