Hitachi Industrial Equipment Systems Co., Ltd. and Mitsubishi Electric Corporation have 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 (hereinafter “Business Transfer”).
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.
Business Transfer
The Business Transfer does not include the transformers manufactured at Mitsubishi Electric’s Transmission & Distribution Systems Center, Ako Factory. 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.
The company aims to contribute to the sustainable evolution of Japan’s power transmission
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
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.
With the global diversification of power generation sources due to the spread of renewable energy and the increasing demand for electric power due to the expansion of data centers and semiconductor manufacturing with the spread of generative AI and Digital Transformation (DX), the demand for power distribution transformers is expected to grow globally over the long term.
Top Runner Program
In Japan, the Top Runner Program under the Energy Conservation Law sets targets for improving energy consumption efficiency, and distribution transformers used in factories and buildings are expected to achieve improvement by 11.4% in the fiscal year ending March 31, 2027 compared to the actual value for the same period ending 2020.
The improvement of environmental performance is becoming indispensable, and in 2026, the market is expected to expand by more than 10% from the 2022 level.
Hitachi Group expanding its transformer business globally
Hitachi Group expands transformer business globally as one of the key products for achieving carbon neutrality
Hitachi Group is expanding its transformer business globally as one of the key products for achieving carbon neutrality. As a major manufacturer of distribution transformers in Japan, Hitachi Industrial Equipment Systems provides products that achieve superior energy efficiency by using 'amorphous metal' with low power loss in the iron core, and products that achieve high environmental performance and safety by using vegetable oil (ester oil).
Furthermore, as part of the Hitachi Group, the global major in transformers, Hitachi Energy, is offering liquid-filled and dry-type transformers, as well as services for complete life-cycle support to utilities, industrial and transport sectors by ensuring high reliability and optimized performance while lowering life-cycle costs and environmental impact.
Mitsubishi Electric’s distribution transformer business
Mitsubishi Electric’s distribution transformer business based at its Nagoya Works has evolved and inherited technologies cultivated through years of experience. More recently, it has been promoting a rich lineup of Top Runner oil-filled transformers such as the R series, in pursuit of energy-saving performance.
Looking forward, to strengthen the business further and ensure a stable supply of products, the company duly decided on the Business Transfer to Hitachi Industrial Equipment Systems.
Hitachi and Mitsubishi Electric partnership
The integration will contribute to the Japanese government’s aim to achieve 'carbon neutrality by 2050'
Hitachi Industrial Equipment Systems and Mitsubishi Electric shared a common vision that integrating the technologies and assets of the two companies to improve energy efficiency and increase business value through the development and provision of more environmentally friendly products is the best way to achieve the advanced power transmission and distribution network required in Japan.
Furthermore, the integration will contribute to the Japanese government’s aim to achieve 'carbon neutrality by 2050'. Accordingly, the top management of the two companies came to the agreement at this time.
Industrial equipment supporting social infrastructure
Yasuhiro (Charlie) Takeuchi, the President and Chief Executive Officer (CEO), Hitachi Industrial Equipment Systems, said “The desire to contribute to Japan’s carbon neutrality in 2050 is behind this integration. Hitachi Industrial Equipment Systems globally provides industrial equipment that supports social infrastructure and manufacturing, and transformers are indispensable products for building a greener and more intelligent domestic power transmission and distribution network in Japan.”
Yasuhiro Takeuchi adds, “We are confident that through a steady integration process, we can contribute to realizing the sustenance of society within ‘Planetary Boundary’ which is the target of the Hitachi Group.”
Nagoya Works distribution transformer business
Toshie Takeuchi, Executive Officer (Group President, Factory Automation Systems), Mitsubishi Electric, said “Starting in 1952, the Nagoya Works distribution transformer business has over 70 years of production experience. We are pleased that Hitachi Industrial Equipment Systems will inherit our technology that has been cultivated over many years, as it can contribute to the development of the distribution transformer industry.”
Toshie Takeuchi adds, “We will gradually proceed with the business integration while continuing our supply to the market. In the future, we will focus on expanding the factory automation systems business and our Circular Digital-Engineering business.”
