TOKYO, January 20, 2025 – (JCN Newswire) – – Hitachi Ltd (OTC:). (TSE: 6501, “Hitachi”) announced today that it has completed the acquisition of Joliet Electric Motors, LLC (“Joliet”), headquartered in Illinois, United States, and engaged in the sale and service of large motors in North America from three fund(1) on January 17. In the future, Hitachi Industrial Products Ltd. (“Hitachi Industrial Products”), which is engaged in the business of large industrial equipment, will manage the Joliet business.
Joliet has 90 years of experience in the sales and maintenance (repair, rebuild) business of large engines for the energy and heavy industry sectors in North America. Since 2002, Joliet has strengthened its partnership with HitachiIndustrial Products as a sales distribution partner for oil drilling. Through this acquisition, Hitachi Industrial Products will enhance its current business by expanding sales of large industrial equipment in North America, strengthen the maintenance services business for existing products and enter the maintenance services business for products manufactured by other companies. Hitachi Industrial Products also aims to contribute to the reduction of CO2 emissions from energy sources by developing and supplying electrified products through Joliet’s sales channels.
The purpose and significance of this acquisition
According to the US Energy Information Administration’s 2023 Energy Outlook, CO2 emissions from energy sources in the United States are expected to decline by 2050 due to advances in electrification, improved equipment efficiency, and the expansion of renewable energy generation. However, oil production is projected to continue to increase due to rising global demand until 2050.
Hitachi Industrial Products has entered the North American power market through a partnership with Joliet since 2002 and has supplied approximately 1,100 large engines. Through this acquisition, Hitachi Industrial Products will gain a local maintenance service base before significantly increasing maintenance for delivered products. HitachiIndustrial Products will also work with Joliet to provide maintenance services for approximately 7,000 wind power generators and large motors installed in Hitachi Group products in North America. By leveraging Joliet’s sales channels, Hitachi Industrial Products aims to accelerate the transition from fossil fuel engines to electrification products and contribute to the reduction of CO2 emissions from energy sources by developing and providing electrification products that meet customer needs for use in upstream and downstream processes of energy resources, from drilling, refining, storage and transportation.
In addition, Hitachi Industrial Products will propose a replacement for high-efficiency equipment, through the repair and restoration business that is Joliet’s strength, including products manufactured by other companies, and will also expand the current business of CO2 emissions management, collection and remanufacturing/reuse. In the future, Hitachi IndustrialProducts intends to collect operational data from electrification products through sensor devices and use Hitachi Group’s Lumada(2) to develop applications for maintenance engineers. In addition, based on knowledge and data obtained through maintenance services, Hitachi Industrial Products will understand potential customer needs and propose equipment designs and energy optimization operations using AI.
Comment from Jun Abe, CEO Representative, Executive Vice President and CEO, General Manager of Connected Industries Division, Hitachi
“It gives me great pleasure to welcome Joliet to the Hitachi Group. The goal of the Hitachi Group is to contribute
the realization of a sustainable society through its “Social Innovation Business”, which uses its strengths in IT, OT and products to solve customer and societal challenges. As global warming has progressed, the demand for electrification in various industries has increased towards the achievement of a decarbonized society, and motors, which are key products for this purpose, have a strategic position for the Hitachi Group. In the future, together with Joliet, the Hitachi Group will strengthen and expand its current business in the energy market across the entire value chain of large engines and contribute to the preservation of the global environment using Hitachi Group’s digital technologies.”
Comment from Keizo Kobayashi, President and CEO, Hitachi Industrial Products
The first transaction between Joliet, which has been involved in maintenance of large engines in the heavy industry sector of the North American energy market for 90 years, and Hitachi dates back to 1968. Both companies, linked through large engines, will increase their respective strengths in the energy market during the transition period towards the energy transition. Hitachi Industrial Products will develop, manufacture and sell high-performance electrical products together with Joliet. Furthermore, by leveraging Joliet’s expertise in repair and refurbishment, Hitachi Industrial Products will collect, analyze and use product performance data to ensure optimal equipment, thus establishing a recurring business cycle.
Comment from Tim Tibbott, CEO, Joliet Electric Motors, LLC
We are thrilled to continue our 57-year partnership with Hitachi, the Joliet Team. I believe that by working together we can offer important solutions for electrification and create value for our clients in heavy industry and the energy market. Furthermore, I would like to express my gratitude to Argosy on behalf of the entire Joliet Electric Motors team. We appreciate 16 years of unwavering leadership and support.
(1) Argosy Investment Partners IV, LP (based in Pennsylvania, United States), Odyssey Capital Group, LP (based in Pennsylvania, United States) and Ironwood Mezzanine Fund II LP (based in Connecticut, United States).
(2) Lumada: an umbrella term for solutions, services and technologies that use Hitachi’s advanced digital technologies to create value from customer data and accelerate digital innovation www.hitachi.com/products/it/lumada/global/en/index.html
About Hitachi, Ltd. (TYO:)
Hitachi drives the business of social innovation, creating a sustainable society through the use of data and technology. We solve customer and societal challenges with Lumada solutions that leverage IT, OT (operational technology) and products. Hitachi operates within 3 business sectors “Digital Systems and Services” – supporting the digital transformation of our clients; “Green energy and mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective industries” – connecting products through digital technology to provide solutions in various industries. Driven by digital, green and innovation, we strive for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ending March 31, 2024) totaled ¥8,564.3 billion, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information about Hitachi, visit the company’s website at https://www.hitachi.com.
About Hitachi Industrial Products, Ltd.
Hitachi Industrial Products contributes to improving the social and environmental values of our customers across the entire manufacturing business in Hitachi’s Connective Industries sector, which digitally connects products in a wide range of areas such as industrial distribution, water infrastructure, healthcare, home appliances, air conditioning systems, measurement, systems analysis and construction systems. For details, visit the Hitachi Industrial Products, Ltd. website. (https://www.hitachi-ip.com/)
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