In accordance with the agreement signed in December 2018, Hitachi Ltd and ABB Ltd have announced the completion of all required procedures, and the formation of?Hitachi ABB Power Grids Ltd. Hitachi has an 80.1 % stake in the new entity (which has business volume of approximately 10 billion USD) and 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. “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 Toshikazu Nishino.
The joint venture will create a new global power leader. The alliance is expected to produce expansion opportunities for the new entity in areas such as mobility, smart cities, industry, energy storage and data centres, besides providing the financial strength to support ambitious projects and provide access to Japan, the world’s third largest economy.
“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.
“Combining our respective technology strengths will bring us new market opportunities and enable us to deliver greater customer value,” said Claudio Facchin, CEO, Hitachi ABB Power Grids. “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.”