Johnson Controls, Hitachi, Ltd and Hitachi Appliances Inc have completed their global joint venture agreement and will now begin operating as Johnson Controls-Hitachi Air Conditioning with immediate effect, providing global customers with a full range of world class air conditioning products and technology.
In the agreement, Johnson Controls has acquired a 60 per cent stake in the new entity, which has more than ¥350 billion in annual sales (approximately $2.8 billion). Hitachi Appliances retains ownership of the remaining 40 per cent of the company.
The joint venture has around 14,000 employees and 24 locations worldwide dedicated to design, engineering and manufacturing throughout Asia, Europe and Latin America. It will build on both companies' technology, research and development leadership, as well as expanding marketing channels.
The companies say that their customers around the world will now have the most diverse range of air conditioning products in the industry, including Hitachi’s world-class variable refrigerant flow systems, residential air-conditioning solutions, high-efficiency chillers and leading-edge rotary and scroll compressors – in addition to Johnson Controls’ industry leading HVAC and building automation solutions.
The joint venture’s management team will be led by Franz Cerwinka, chief executive officer and Shinichi Iizuka, chief operating officer and president. Cerwinka has 20 years of experience with Johnson Controls, including four years in Japan as vice president of finance with the company’s automotive business and work with more than ten joint ventures. Iizuka has been with Hitachi for more than 35 years, having spent eight years in India as the president of Hitachi Home & Life Solutions India Ltd. He has led Hitachi’s air conditioning business since 2013.
Mr Cerwinka said: “We are very pleased to start operations and are anxious to serve our customers with an unmatched global network of channels and technology. Johnson Controls and Hitachi are a perfect match with our complementary product lines, unparalleled brands and rich 100-year histories.”
Mr Iizuka said: “Just as Hitachi and Johnson Controls have each made innovation the foundation of their separate success, innovation will now be the cornerstone of Johnson Controls – Hitachi Air Conditioning’s success.”
Johnson Controls is a global multi-industrial company with 130 years of history in supplying heating, ventilation, air-conditioning, building controls, refrigeration and security systems for buildings. Through its Building Efficiency business, the company delivers solutions that increase energy efficiency and lower operating costs for over a million customers who are served through nearly 700 offices in more than 150 countries. Through a previous OEM agreement, the company has already begun selling Hitachi Variable Refrigerant Flow (VRF) systems in North America and recently opened a VRF training center in Dallas, Texas.
A global home appliances and air conditioning solutions provider, Hitachi Appliances, supplies high quality, efficient and reliable Hitachi’s HVAC products 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 provide Hitachi branded HVAC products in the Japanese market after this transaction.