Mitsubishi Electric to Transfer Distribution Transformer Business to Hitachi Industrial Equipment Systems

Author photo: Craig Resnick
ByCraig Resnick
Acquisition or Partnership

Mitsubishi Electric announced that they have agreed to transfer the distribution transformer business of Mitsubishi Electric’s Nagoya Works, which develops and manufactures factory automation (FA) equipment, to Hitachi Industrial Equipment Systems and integrate their businesses. After obtaining approval from the relevant authorities, assets and other items related to the distribution transformer business (development, design, manufacturing, sales, and maintenance) at Mitsubishi Electric’s Nagoya Works will be transferred to Hitachi Industrial Equipment Systems in stages beginning in October 2024, with completion scheduled for April 1, 2026. The Business Transfer does not include the transformers manufactured at Mitsubishi Electric’s Transmission & Distribution Systems Center, Ako Factory.

Distribution Transformer Business

Through this Business Transfer, Hitachi Industrial Equipment Systems will expand its product lineup of highly energy-efficient and eco-friendly transformers and accelerate the growth of grid edge solutions centered on power distribution systems, mainly in the domestic market. Furthermore, the company aims to contribute to the sustainable evolution of Japan’s power transmission and distribution network by utilizing Hitachi Group’s wider capabilities in IT, OT, and Products. Mitsubishi Electric will focus on expanding its FA systems business based on its portfolio strategy of concentrating investments in priority growth businesses.

Distribution transformers serve the function of lowering the voltage of high-voltage electricity generated by power plants, so that the power can be used to meet the needs of the users. They are installed at relay points of the power grid, such as substations, public facilities, business facilities, and commercial facilities.

Engage with ARC Advisory Group

Representative End User Clients
Representative Automation Clients
Representative Software Clients