Hitachi, Fuji Electric, Meiden to dissolve joint venture

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Hitachi Ltd, Fuji Electric Co and Meidensha Corp have finalized their agreement to dissolve Japan AE Power Systems Corp (AE Power), their joint venture in the power transmission and distribution (T&D) field.

AE Power was established on July 1, 2001 by the consolidation of the three companies’ T&D businesses and has been developing its business globally. In recent years, the market for these T&D systems has seen growing demand, particularly from emerging markets. Going forward, higher growth rate is expected by the progress of the smart energy in social infrastructure and the industrial field, such as the use of the renewable energy resources and the smart grid.

Under such circumstance, the parties had the discussions on the AE Power growth strategy taking into account various factors and they came to reach a same conclusion that there is a need to fundamentally review its growth strategy. The parties recently reached a basic framework agreement that the parties will dissolve AE Power for a better organization and they will rebuild and explore the growth of T&D business in each company level.