Fuji Electric and Shanghai Electric form Two Joint Ventures for HV Inverters in China
Fuji Electric Co., Ltd.and its subsidiary, Fuji Electric (China) Co., Ltd. (FEC) has signed an agreement with Shanghai Electric Group Co., Ltd. (SEC) establishing two joint ventures for high-voltage inverters in China. The establishment of joint ventures will combine FEC's power electronics and control field technologies and SEC's machine technology and sales force. They are expected to create synergy and expand FEC's high-voltage inverter business with the local completion framework, based on the concept of local design and production for local consumption. The two joint ventures will be: A sales joint venture (SJV) that SEC will have the majority stake in, and a production joint venture (PJV) that FEC will have the majority stake in. In the future, in addition to high-voltage inverters, FEC and SEC will consider further expanding their business relationship by launching power electronics products such as uninterruptible power supply systems and power conditioners onto the market.
The SJV will be called Shanghai Electric Fuji Electric Power Technology Co., LTD. It will start operation in February, 2014 and will focus on engineering research and development, sales and after-sales services of high-voltage inverters and related power electronics products. It will be capitalized with US$30 million. Fuji Electric will hold a 49% stake (Fuji Electric: 20% and FEC: 29%) and SEC will hold a 51% stake.
The PJV will be called the Shanghai Electric Fuji Electric Power Technology (Wuxi) Co., LTD. (on the premises of Wuxi Fuji Electric FA Co., Ltd.). It will also start operation in February, 2014 and will focus on the design and production of high-voltage inverters and related power electronics products. It will be capitalized at US$30 million. Fuji Electric will hold a 51% stake (Fuji Electric: 20% and FEC: 31%) and SEC will hold a 49% stake.
Combined with a high-voltage motor, a high-voltage inverter used for high-voltage power supplies (3kV or more) has an energy saving effect by controlling the motor’s rotational speed. Therefore, recently there has been increased demand for high-voltage inverters in industrial plants such as electric power and petrochemical plants and electricity and social infrastructures.
The high-voltage inverter market in China is expected to grow over 15% per year. China is the largest primary energy consumption market, and the industrial field accounts for 70% of its total energy consumption. In the industrial field, electric motor systems account for 70% of the total electricity consumption. Thus, there are high expectations for the good energy saving effect of introducing inverters. The government also is making an effort to promote energy efficiency.
