ABB, Hitachi launch $10bn joint power venture

New company to develop energy networks to meet growing demand for, and increase volume of, renewable energy in electricity system

Leading technology firms, Hitachi and ABB, have announced the launch of Hitachi ABB Power Grids, with an annual turnover of $10bn.
The launch comes as the two companies completed a joint merger, which will see Hitachi hold 80.1% of the new joint entity, while ABB will maintain the remaining percentage.
The deal reflects the commercial importance placed by the global energy sector on sustainable energy, including facilities, mobility solutions, smart cities, industry and information technology. The two companies are now looking to grow and improve on these capabilities, according to Thursday's statement.
Hitachi ABB Power Grids will look to develop energy networks to meet the growing demand for, and include a greater volume of, renewable energy within the electricity system.
Claudio Facchin, Head of ABB's Power Systems Division has been named as CEO of the new company, with Hitachi Executive Vice President Toshikazu Nishino as Chairperson. Hitachi ABB Power Grids will expand Hitachi's energy solutions business globally as a core part of the company's Social Innovation Business.
The new entity's headquarters will remain in Zurich, Switzerland, with the current management team ensuring business continuity. Hitachi ABB Power Grids looks to operate with about 36,000 employees in over 90 countries.
Nishino said that Hitachi's pioneering digital technologies with world-class energy grid solutions will help the company play an important role in global transformation. It will also look to reduce carbon emissions from energy systems, to provide a sustainable energy future, alongside smart solutions for the most dynamic network.
Nishino added, "It will also contribute to achieving the United Nations Sustainable Development Goal 7, which is to ensure universal access to affordable, reliable and clean energy."