New Delhi: ABB and Hitachi on Tuesday announced an agreement to form a joint venture for high voltage direct current system solutions in Japan.
"The new joint venture will build Hitachi's strong local market presence and ABB's High Voltage Direct Current (HVDC) technology leadership to address Japan's new energy focus," the two companies said in a joint statement.
Hitachi and ABB will take equity interests of 51 per cent and 49 per cent, respectively.
The new entity, to be based in Tokyo, will be responsible for design, engineering, supply and after-sales services related to the DC system of HVDC projects, bringing in ABB's technologies to the Japanese market where Hitachi will be the prime contractor, the statement said.
The joint venture is expected to commence operations in coming months, subject to necessary approvals and statutory procedures.
"By enhancing and expanding the HVDC business through its partnership with ABB, which has a strong performance record in the global market, Hitachi will continue to contribute to the stabilisation of Japan's electric power grid," said Hiroaki Nakanishi, Chairman & CEO of Hitachi Ltd.
"We are proud to enter into this partnership with Hitachi with a solid reputation and extensive 100 year long experience in the Japanese market.
Together, we can build on our complimentary strengths to play our part in the evolution of Japan's power infrastructure," said Ulrich Spiesshofer, CEO of ABB.
HVDC is a technology used for transmitting electricity between two grid systems. The system is ideal for long-distance transmission due to its ability to minimise electricity losses and its lower space requirements and construction costs.
