Johnson Controls, Hitachi Ltd and Hitachi Appliances Inc have completed their global joint venture agreement and will immediately commence operations of Johsnons Controls-Hitachi Air Conditioning, it has been announced.
The joint venture agreement will, the companies said, provide global customers with a full range of air conditioning products and technology. Through the agreement, Johnson Controls has acquired a 60% ownership stake of the new entity, which has more than $2.8bn in annual sales. Hitachi Appliances retains ownership of the remaining 40% of the company.
The joint venture has approximately 14,000 employees and 24 global locations dedicated to design, engineering and manufacturing throughout Asia, Europe and Latin America. It will build on both organisations' technology, research and development leadership, as well as expanding marketing channels.
Customers will now have access to a diverse range of air conditioning products including Hitachi's variable refrigerant flow systems, residential air-conditioning solutions, high-efficiency chillers and rotary and scroll compressors, as well as Johnson Controls' 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, while Iizuka has been with Hitachi for over 35 years.
Johnson Controls is a global, multi-industrial company supplying heating, ventilation, air-conditioning, building controls, refrigeration and security systems for buildings. Global home appliances and air conditioning solutions provider, Hitachi Appliances, supplies 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.
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