Fuji Electric Acquires Singaporean Low-Voltage Switchboard Manufacturer

Category:
Acquisition or Partnership

Fuji Electric Co., Ltd., headquartered in Tokyo, announced that it has concluded an agreement with Osaki Electric Co., Ltd. and its wholly owned subsidiary Osaki United International Pte. Ltd. (OUI) regarding the transfer of all shares of Sigapore-based SMB Electric Pte. Ltd. (SMBE), a major manufacturer of low-voltage electrical switchgear and control gear solutions, wholly owned by OUI. Fuji Electric is scheduled to acquire all of the issued shares of SMBE as of December 29, 2014.

SMBE is conducting business in Singapore, Malaysia, Indonesia and Australia through its 13 subsidiaries in these markets. It has taken advantage of its strong relationships with design consulting and plant engineering firms to deliver many installations for data centers, commercial facilities and industrial plant and factory equipment. The acquisition is expected to allow Fuji Electric to make use of SMBE's resources to further expand its business in Asia. The following describes the specific approaches.

Expansion of sales channels and strengthening of engineering capabilities
In addition to the distribution channels Fuji Electric has, SMBE's sales channels in the Asia-Pacific region and engineering capabilities will be utilized to increase the number of industrial plant and system projects that combine the company's low-voltage switchboards and Fuji Electric's power electronics devices, such as uninterruptible power supplies systems (UPSs), inverters, motors, molded and other transformers and measuring instruments.

Strengthening of business by medium-voltage switchboard technology
Licensing of Fuji Electric's technology will make it possible to start producing medium-voltage switchboards, which can be combined with Fuji Electric's merchandise for the development of new markets, such as marine electrical equipment and offshore plants in the offshore sector.

Keywords: Low-Voltage, Electrical Switchgear, Control Gear, Singapore, Malaysia, Indonesia, ARC Advisory Group.

 

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