Hitachi Strengthens U.S. Presence with Strategic Acquisition
Boosting Sales and Maintenance Services in Large Motors
In a move to expand its U.S. sales and maintenance services, particularly in large motors, Hitachi has acquired Joliet Electric Motors, an Illinois-based company with a rich history of 90 years in repairing and rebuilding large motors for North America’s energy and heavy industry sectors.
A Strategic Partnership Takes Shape
Joliet has been a trusted sales distribution partner for Hitachi in the oil drilling industry since 2002, delivering over 1,100 large motors within North America. This acquisition will enable Hitachi to enhance its recurring business by expanding the sales of large industrial equipment in North America, strengthening its maintenance service business for existing products, and entering into the maintenance service business for products manufactured by other companies.
Electrification: The Key to Reducing CO2 Emissions
According to the U.S. Energy Information Administration’s 2023 Energy Outlook, CO2 emissions from energy sources in the U.S. are expected to decrease by 2050 due to the advancement of electrification, improved efficiency of equipment, and the expansion of renewable energy generation. Hitachi plans to provide electrified products to reduce CO2 emissions from energy sources, aligning with its commitment to sustainability.
Collaboration and Innovation
By leveraging Joliet’s sales channels, Hitachi aims to accelerate the transition from fossil fuel-powered engines to electrification products in drilling, refining, storage, and transportation. Through the repair and rebuild business, Hitachi will propose moves to high-efficiency equipment, which will expand recurring business by managing CO2 emissions, collection, and re-manufacturing/reuse. Furthermore, Hitachi plans to collect operational data from electrification products through sensing devices and use its digital transformation arm, Lumada, to develop applications for maintenance engineers.
Unlocking Customer Needs with AI and Data Analytics
Based on the knowledge and data obtained through maintenance services, Hitachi will grasp the potential needs of customers and use AI to propose equipment designs and energy optimization operations. This strategic acquisition is poised to strengthen Hitachi’s position in the U.S. market, driving growth and innovation in the industry.
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