ABB enters into joint venture with Mitsubishi Electric

ABB has announced the creation of a joint venture with Mitsubishi Electric’s low-voltage power distribution product business, forming a new company focused on low-voltage solutions for Asian markets. For a consideration of JPY79 billion (US$495 million), ABB will acquire a controlling 51% stake in the newly carved out company as well as full ownership of the related sales operations outside of Japan of Mitsubishi Electric’s low-voltage power distribution products. ABB says the new company will bring together ABB’s technology and global sales network with Mitsubishi Electric’s established market presence, and increase the ABB Electrification Business Area’s currently limited presence in Japan.

“Japan is one of the world’s most important electrification markets, where the people in Mitsubishi Electric’s low-voltage power distribution division have served customers and built deep expertise over many decades,” said Giampiero Frisio, President of ABB’s Electrification Business Area. “This joint venture brings together that strong local foundation with ABB’s leading technologies and global reach, significantly strengthening our position in Japan and across Asia-Pacific.”

Mitsubishi Electric’s power distribution business employs around 2800 people, with dedicated manufacturing facilities in Fukuyama, Japan, and Hanoi, Vietnam. Its portfolio includes low-voltage circuit breakers, switches, motor starters, contactors and control devices, energy measurement and monitoring equipment, and uninterruptible power supply systems.

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