Looking ahead, Hitachi and Hitachi ABB Power Grids will also jointly target new markets for future growth. In addition, Hitachi is looking to establish a “shift to service and solution-oriented businesses.” That could entail a “stronger” energy management service business, and an expansion in its remote monitoring service, and maintenance and service offerings. Hitachi also anticipates a “collaboration” between Hitachi ABB Power Grids and GlobalLogic, a U.S.-headquartered digital engineering services firm that Hitachi announced it would acquire in March. To grasp emerging opportunities, such as in the growth of asset management solutions and the digitalized operation of energy networks, Hitachi intends to strengthen Hitachi ABB Power Grids’ revenue growth through an integration with Hitachi’s Lumada digital solutions, services, and technologies offering, slides from the June 8 event suggest. While governments are promoting economic recovery policies in conjunction with green policies, the past year’s economic stagnation and declining capital investment has affected a shift toward digitalization. However, the company noted the pandemic has prompted changes to the energy market. It recently also won crucial orders for its proprietary HVDC (high-voltage direct-current) technology based on voltage sourced converter technology from the 3.6-GW Dogger Bank Wind Farm, which is under construction in the North Sea. ![]() Over the past year, despite the pandemic, Hitachi ABB Power Grids marked innovative “firsts.” In December, for example, it launched a year-long demonstration in Scotland of the world’s first hybrid solution to combine a STATCOM (static compensator) with a synchronous condenser-combining traditional technology with power electronics-to provide a fast-reaction spinning capacity and short circuit control. In those materials, executives also highlighted Hitachi ABB Power Grids’ leading market share in the world’s transmission and distribution sector. According to materials presented during Hitachi’s investor day on June 8, the Power Grids business unit-and its core offerings in grid automation, high-voltage components, grid integration, and transformers-brought in 68% of Hitachi’s energy-related revenues in fiscal year 2020. Technology will remain the core business of the company that currently employs about 36,000 people in 90 countries. The past year has been demanding for everyone, but we look forward with optimism.” “With our new name ‘Hitachi Energy’ we are broadening our commitment to creating further value for customers, our employees and society. “The energy landscape continues to evolve and so do we,” he said. ![]() On Thursday, notably, Hitachi ABB Power Grids also announced that when it officially adopts the name “Hitachi Energy” in October, it will also change its corporate brand to the Hitachi brand and “use it for external and internal communications.” Going ‘Beyond the Grid’Īccording to Claudio Facchin, former head of the division when it was rooted at ABB and who now serves as CEO of Hitachi ABB Power Grids, the name change reflects the company’s response to a rapidly evolving energy landscape and highlights a potentially new direction for company growth “beyond the grid” to unlock new opportunities in emerging areas through an integration with Hitachi’s core digitalization offerings. Hitachi today holds an 80.1% stake in the Zurich-headquartered Hitachi ABB Power Grids joint venture, while ABB holds the remaining 19.9% stake, but as announced last year, ABB also holds a pre-defined option to exit the retained shareholding three years after closing-or by 2023. The deal was notable when it was first announced in December 2018 owing to ABB’s divestment of Power Grids, a lucrative division that pioneered several grid technologies and had for years accounted for more than a quarter of ABB’s revenue. ![]() Hitachi ABB Power Grids’ name change to “Hitachi Energy Ltd.” was formally registered on June 30 but announced on July 1-marking exactly one year since Hitachi and ABB closed their $11 billion deal to officially launch Hitachi ABB Power Grids. ![]() The name change reflects the firm’s business evolution amid a rapidly evolving energy landscape, the company said. Hitachi ABB Power Grids, the behemoth joint venture firm officially launched last year when Japanese technology conglomerate Hitachi acquired a majority share in Swiss conglomerate ABB’s Power Grids business, will be known as “Hitachi Energy” starting in October 2021.
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