Auto And Tech | Hitachi Ltd announced today that on January 17, it completed the acquisition of Joliet Electric Motors, LLC (“Joliet”), which is headquartered in Illinois, the United States and engaged in the sales and maintenance service business of large motors in North America, from three funds(1). Joliet’s business will be operated by Hitachi Industrial Products Ltd. (“Hitachi Industrial Products”), a company that manufactures huge industrial equipment.
Joliet has a 90-year history of selling and servicing large motors for the energy and heavy industries in North America. Since 2002, Joliet has strengthened its sales distribution collaboration with Hitachi Industrial Products for oil drilling. Hitachi Industrial Products will benefit from this acquisition by increasing sales of large industrial equipment in North America, strengthening its maintenance service business for existing products, and entering the maintenance service business for products manufactured by other companies. Hitachi Industrial Products also strives to reduce CO2 emissions from energy sources by creating and distributing electrified products through Joliet’s sales channels.
Purpose and Significance of the Acquisition
According to the U.S. Energy Information Administration’s 2023 Energy Outlook, CO2 emissions from energy sources in the United States are predicted to fall by 2050 as electrification advances, equipment efficiency improves, and renewable energy generation expands. However, production of oil and natural gas is expected to expand until 2050 due to rising worldwide demand.
Since 2002, Hitachi Industrial Products has entered the North American energy sector through a relationship with Joliet, delivering roughly 1,100 big motors. Hitachi Industrial goods will establish a local maintenance service base as part of this transaction, anticipating a considerable rise in maintenance for supplied goods. HitachiIndustrial Products will also work with Joliet to provide maintenance services for about 7,000 windfarm generators and large motors deployed in Hitachi Group products across North America. Hitachi Industrial Products aims to accelerate the transition from fossil fuel-powered engines to electrification products, as well as contribute to the reduction of CO2 emissions from energy sources, by developing and providing electrification products that meet customer needs for use in the upstream and downstream processes of energy resources, such as drilling, refining, storage, and transportation.
Furthermore, Hitachi Industrial Products will propose the replacement of high-efficiency equipment through Joliet’s repair and rebuild business, which includes products manufactured by other companies, as well as expanding recurring business through CO2 emissions management, collection, and re-manufacturing/reuse. In the future, Hitachi IndustrialProducts intends to collect operating data from electrification products via sensing devices and use Hitachi Group’s Lumada(2) to create applications for maintenance engineers. Furthermore, based on the expertise and data gained through maintenance services, Hitachi Industrial Products will understand the potential demands of clients and suggest equipment designs and energy optimisation procedures that use AI.
Comment from Jun Abe, Representative Executive Officer, Executive Vice President, and General Manager of Hitachi’s Connective Industries Division
“I’m delighted to welcome Joliet to the Hitachi Group. The Hitachi Group intends to contribute to
The realisation of a sustainable society is achieved through its “Social Innovation Business,” which combines its capabilities in IT, OT, and products to tackle customer and social concerns. As global warming has progressed, the demand for electrification in many industries has increased in order to achieve a decarbonised society, and motors, which are crucial items for this purpose, have taken on strategic importance for the Hitachi Group. In the future, the Hitachi Group, in collaboration with Joliet, will strengthen and develop its recurring business in the energy market across the whole value chain of large motors, as well as contribute to worldwide environmental preservation by leveraging Hitachi Group’s digital technology.”
Comment from Keizo Kobayashi, President and Director of Hitachi Industrial Products.
The first transaction between Joliet and Hitachi, which has been in the maintenance service business for large motors in the heavy industry sector of the North American energy market for 90 years, took place in 1968. Both enterprises, linked by huge motors, will use their individual capabilities in the energy market during the transition period to the energy transition. Hitachi Industrial Products will design, manufacture, and sell high-efficiency electric products in collaboration with Joliet. Furthermore, by leveraging Joliet’s repair and rebuild knowledge, Hitachi Industrial goods will collect, analyse, and use operating data from the goods to deliver optimal equipment, forming a recurrent business cycle.
Comment from Tim Tibbott, CEO of Joliet Electric Motors, LLC
We are excited to continue our 57-year collaboration with Hitachi, Joliet Team. I believe that by working together, we can provide key electrification solutions and add value to our customers in the heavy industries and energy markets.Furthermore, I’d want to thank Argosy on behalf of the entire Joliet Electric Motors team. We appreciate 16 years of consistent leadership and support.
(1) Argosy Investment Partners IV, L.P. (based in Pennsylvania), Odyssey Capital Group, L.P. (also in Pennsylvania), and Ironwood Mezzanine Fund II L.P. (based in Connecticut).
(2) Lumada: A collective word for products, services, and technology that use Hitachi’s superior digital technologies to create value from customer data and drive digital innovation. www.hitachi.com/products/it/lumada/global/en/index.html
About Hitachi Ltd.
Hitachi drives the Social Innovation Business, which aims to create a sustainable society via the use of data and technology. Lumada solutions address customer and societal concerns by leveraging IT, OT (Operational Technology), and goods.Hitachi operates in three business sectors: “Digital Systems & Services” (supporting our customers’ digital transformation), “Green Energy & Mobility” (contributing to a decarbonised society through energy and railway systems), and “Connective Industries” (connecting products through digital technology to provide solutions in various industries).We strive for growth through co-creation with our consumers, motivated by digital, green, and innovation. The company’s revenues across three sectors for fiscal year 2023 (ending March 31, 2024) were 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees globally. For more information on Hitachi, please go to https://www.hitachi.com.
About Hitachi Industrial Products Ltd.
Hitachi Industrial Products helps to improve our customers’ social and environmental values throughout the product business in Hitachi’s Connective Industries sector, which digitally connects products in a variety of fields such as industrial distribution, water infrastructure, healthcare, home appliances, air conditioning systems, measurement, analysis systems and building systems. For further information, please visit the Hitachi Industrial Products, Ltd. website (https://www.hitachi-ip.com/)
Source: Hitachi, Ltd.
