Johnson Controls (NYSE: JCI) (TSE: 6501) and Hitachi, Ltd. (TSE: 6501), announced that the companies have finalized the agreement to form a global joint venture and will immediately commence operations under the Johnson Controls-Hitachi Air Conditioning venture to provide global customers with a full range of first-class air conditioning products and technologies.
Under the agreement, Johnson Controls, Inc. <Under the agreement, Johnson Controls acquired a 60 percent stake in the new company, which has annual sales of more than 350 billion yen (approximately US$2.8 billion), with Hitachi Appliance retaining the remaining 40 percent of the company. <The new joint venture will have approximately 14,000 employees and 24 global locations dedicated to the design, engineering, and manufacturing of devices throughout Asia, Europe, and Latin America. The venture will leverage both companies" leadership in technology, research and development, as well as expanded marketing channels. The partnership will provide customers around the world with the industry's most diverse range of air conditioning products, including world-class variable refrigerant flow technology, residential air conditioning solutions, high-efficiency chillers and advanced rotary compressors - along with Johnson Controls" industry-leading HVAC and building automation solutions.
Johnson Controls“ management team is a member of the Johnson Controls management team. <The joint venture management team will be led by Franz Serwenka as Chief Executive Officer and Shinichi Iizuka as Chief Operating Officer and President. Mr. Serwenka has nearly 20 years of experience with Johnson Controls, including four years in Japan where he served as Vice President of Finance for the company's automotive business and worked on more than 10 joint ventures. Mr. Iizuka spent more than 35 years with Hitachi, including eight years in India, where he served as President of Hitachi Home & Life Solutions Limited's India business. He has led Hitachi's air-conditioning business division since 2013. <”We are thrilled to begin operations and are excited to serve our customers through an unrivaled global network of channels and technology,“ said Serwenka. ”The Johnson Controls and Hitachi partnership is an ideal relationship with a complementary set of products, unique brands and a rich 100-year history.“
Izze said. <”I have spent my career with Hitachi and I know that partnering with Johnson Controls will propel us forward in our quest to outperform the competition,“ said Iizuka. ”Just as Hitachi and Johnson Controls “Just as innovation has been the foundation of their individual success, innovation will be the cornerstone of Johnson Controls-Hitachi Air Conditioning's success.”
Johnson Controls and Hitachi-Hitachi Air Conditioning.
Johnson Controls is a global multi-industry company with a 130-year history of supplying HVAC, building control, refrigeration and building security systems. Through its Building Efficiency business, the company provides solutions that maximize energy efficiency and reduce operating costs to more than one million customers served by nearly 700 offices in more than 150 countries. Through a previous OEM agreement, Johnson Controls has already begun selling Hitachi's Variable Refrigerant Flow (VRF) systems in North America, recently opening an orientation training and shipping center (VRF) in Dallas, Texas. <Hitachi Appliances, a global provider of home appliances and air conditioning solutions, offers high-quality, efficient and reliable HVAC products ranging from residential room air conditioning to variable refrigerant flow systems and other air conditioning equipment for commercial and industrial use. Hitachi Appliances will continue to offer Hitachi-branded HVAC products in the Japanese market following this transaction.
