Johnson Controls, Hitachi in JV
Johnson Controls, Hitachi and Hitachi Appliances have entered into a definitive agreement for a global joint venture to deliver the most diverse technology portfolio in the heating, ventilation, air-conditioning and refrigeration industries.
Through the agreement, which was finalised on the sidelines of the World Economic Forum in Davos, Switzerland, Johnson Controls will obtain a 60-per-cent ownership stake in Hitachi Appliances global air-conditioning business, worth more than $2.6 billion (Bt300 billion) in sales, excluding sales and service operations in Japan.
The Johnson Controls-Hitachi joint venture will bring customers a full range of air conditioning products, including world-class variable refrigerant flow (VRF) technology, leading-edge inverter technology based room air conditioners and absorption chillers — on top of existing Johnson Controls products that meet global customer demands.
With approximately13,800 employees and 24 manufacturing plants, the joint venture will build on both organisations’ technology, research and development leadership, as well as their expanding marketing channels. The transaction is expected to close later this year, subject to regulatory approvals and satisfaction of other customary conditions.
"For Johnson Controls, this partnership reflects our strategic commitment to our building of business as a growth platform," said Alex Molinaroli, Johnson Controls’ chairman and CEO.
"The joint venture will propel us forward with superior products, enabling Johnson Controls to deliver the most diverse technology portfolio in the industry to meet customer demands across the changing global marketplace."
