Johnson Controls, Hitachi complete joint venture and begin operations
Johnson Controls, Hitachi Ltd and Hitachi Appliances Inc have commenced global operations for the new joint venture, Johnson Controls – Hitachi Air Conditioning.
Johnson Controls owns 60 percent of the new entity, and Hitachi Appliances owns 40 percent. Johnson Controls – Hitachi Air Conditioning earns more than ¥300 billion in sales annually (approximately $2.6 billion), excluding sales and service operations in Japan. Its combined customers will now benefit from an unmatched global network of channels and technology around the world.
The new joint venture has approximately 14,000 employees and 24 global locations dedicated to design, engineering and manufacturing throughout Europe, Asia and Latin America. It will build on both organisations’ technology, research and development leadership, as well as expanding marketing channels.
Combined customers will now have arguably the most diverse range of air conditioning products in the industry.
The joint venture’s management team will be led by Chief Executive Officer Franz Cerwinka and Chief Operating Officer and President Shinichi Iizuka. Cerwinka has been with Johnson Controls for almost 20 years, having spent four years in Japan as Vice President of Finance for Johnson Controls’ automotive business, including experience with more than 10 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.
“We’re thrilled to have this agreement signed and anxious to serve our customers – together as one company – with an unmatched global network of channels and technology,” said Cerwinka. “Johnson Controls and Hitachi are a perfect match with our complementary product lines, unparalleled brands and rich 100-year histories. The future is ours.”
“I have spent my career with Hitachi, and I know that combining with Johnson Controls will propel us forward to outperform the competition,” added Iizuka. “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.
A global home appliances and air conditioning solutions provider, Hitachi Appliances, supplies 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.