TOKYO: Hitachi Industrial Equipment Systems Co., Ltd., headquartered in Chiyoda-ku, Tokyo, has reached an agreement with Mitsubishi Electric Corporation to acquire the latter’s distribution transformer business from its Nagoya Works. This acquisition is part of a broader business integration strategy aimed at enhancing the development and manufacturing of factory automation equipment.

The transfer process, which is subject to regulatory approval, will commence in October 2024 and is expected to be completed by April 1, 2026. It is important to note that this business transfer will not affect the transformers produced at Mitsubishi Electric’s Transmission & Distribution Systems Center, Ako Factory.

This acquisition will enable Hitachi Industrial Equipment Systems to broaden its range of energy-efficient and environmentally friendly transformers. The company is set to fast-track the expansion of grid edge solutions that focus on power distribution systems, primarily for the domestic market. Leveraging the extensive capabilities of the Hitachi Group in IT, operational technology, and products, the company is poised to make significant contributions to the sustainable development of Japan’s power transmission and distribution network.

Mitsubishi Electric, on the other hand, plans to concentrate its efforts on growing its factory automation systems business, aligning with its investment strategy that prioritizes key growth sectors.

Distribution transformers play a crucial role in the power grid, reducing the voltage of electricity from power plants to a level suitable for end-user consumption. These transformers are a common sight at various nodes of the power grid, including substations and commercial facilities.

Yasuhiro Takeuchi, President and CEO, Hitachi Industrial Equipment Systems: “The desire to contribute to Japan’s carbon neutrality in 2050 is behind this integration. Hitachi Industrial Equipment Systems globally provides industrial equipment that supports social infrastructure and manufacturing, and transformers are indispensable products for building a greener and more intelligent domestic power transmission and distribution network in Japan. We are confident that through a steady integration process, we can contribute to realizing the sustenance of society within ‘Planetary Boundary’ which is the target of the Hitachi Group.”

Toshie Takeuchi, Executive Officer (Group President, Factory Automation Systems), Mitsubishi Electric: “Starting in 1952, the Nagoya Works distribution transformer business has over 70 years of production experience. We are pleased that Hitachi Industrial Equipment Systems will inherit our technology that has been cultivated over many years, as it can contribute to the development of the distribution transformer industry. We will gradually proceed with the business integration while continuing our supply to the market. In the future, we will focus on expanding the factory automation systems business and our Circular Digital-Engineering business.”

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