TOKYO: Japanese electronics firm Mitsubishi Electric Corp said on Friday that it has agreed to transfer the Nagoya Works distribution transformer business to Hitachi Industrial Equipment Systems Co Ltd, reported dpa news.
The assets and other items related to the distribution transformer business, comprising development, design, manufacturing, sales, and maintenance, will be transferred to Hitachi Industrial after obtaining approval from the relevant authorities.
The companies will integrate their businesses.
The transfer will be in stages beginning in October 2024, with completion scheduled for April 1, 2026.
The business transfer does not include the transformers manufactured at Mitsubishi Electric’s Transmission & Distribution Systems Centre, Ako Factory.
Distribution transformers are used to lower the voltage of high-voltage electricity generated by power plants so that the power can be used to meet the needs of the users. They are installed at relay points of the power grid, such as substations, public facilities, business facilities, and commercial facilities.
Through the business transfer, Hitachi Industrial Equipment Systems will expand its product line-up of highly energy-efficient and eco-friendly transformers.
It will accelerate the growth of grid-edge solutions centered on power distribution systems, mainly in the domestic market.
Hitachi Industrial aims to contribute to the sustainable evolution of Japan’s power transmission and distribution network by utilising Hitachi Group’s wider capabilities in IT, OT, and Products.
Mitsubishi Electric will focus on expanding its FA systems business based on its portfolio strategy of concentrating investments in priority growth businesses.-Bernama
