Fuji Acquires LV Switchboard Maker to Expand Power Electronics Business
Fuji Electric Co., Ltd. has concluded an agreement with Osaki Electric Co., Ltd. and its wholly owned subsidiary OSAKI United International Pte. Ltd. (OUI). This agreement is on the transfer of all shares of SMB Electric Pte. Ltd. (SMBE) wholly owned by OUI. Fuji is scheduled to acquire all of the issued shares of SMBE as of December 29, 2014. In addition to the expansion of its energy-related business, Fuji also expects to strengthen its overseas business with the focus on industrial infrastructure and power electronics systems.
SMBE is a major manufacturer of low-voltage (LV) electrical switchgear and control gear solutions conducting business in Singapore, Malaysia, Indonesia and Australia. It has taken advantage of its strong relationships with design consulting and plant engineering firms to deliver many installations for datacenters, commercial facilities and industrial plant and factory equipment.
Fuji established Fuji Tusco Co., Ltd. in Thailand last October for the purpose of strengthening the power transformation business and, in December, launched Fuji Electric Manufacturing (Thailand) Co., Ltd., a new factory mainly engaged in the production of power electronics devices as the core base of manufacturing in Asia.
The present acquisition is expected to allow us to make use of SMBE's resources to further expand the 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 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’s power electronics devices (such as uninterruptible power supplies systems (UPSs), inverters, motors, molded and other transformers and measuring instruments).
And strengthening of business by medium-voltage switchboard technology: Licensing Fuji’s technology will make it possible to start producing medium-voltage switchboards, which can be combined with other products and technologies for the development of new markets such as marine electrical equipment and offshore plants in the offshore sector.
