Johnson Controls, Hitachi in AC venture
Dubai, December 5, 2013
Johnson Controls, Hitachi and Hitachi Appliances (collectively referred to as Hitachi) have signed a non-binding global air conditioning joint venture.
Under the deal, Johnson Controls will obtain a 60 per cent ownership in Hitachi Appliance’s global air conditioning business, excluding sales and service operations in Japan and certain other assets.
The companies expect the joint venture to begin operations in 2014, subject to final due diligence and board approvals, definitive agreement on terms, required regulatory approvals and other customary conditions.
The partnership will include key products such as variable refrigerant flow (VRF) and inverter technologies supporting both the commercial and residential markets, combining JC’s global reach with Hitachi’s technology expertise.
"Technology leadership derived from its ongoing investments in research and development has established Hitachi as a key contributor to the global HVAC industry," said Alex Molinaroli, president and chief executive officer, Johnson Controls.
"The addition of these capabilities adds key technologies to our product portfolio. Combined with our existing $15 billion building technologies and services business, this investment positions Johnson Controls as the world's largest commercial air conditioning provider."
Hiroaki Nakanishi, president of Hitachi, said: "Alongside with this joint venture, we look forward to exploring further opportunities to collaborate with Johnson Controls and Hitachi's broad building solution business capitalizing on IT-related technologies." - TradeArabia News Service