Hitachi Acquires Joliet Electric Motors

21 Jan 2025 CW Team

Joliet has a 90-year track record in the sales and maintenance service business (repair, rebuild) of large motors for theenergy and heavy industry sectors in North America. Since 2002, Joliet has strengthened its partnership with HitachiIndustrial Products as a sales distribution partner for oil drilling. Through this acquisition, Hitachi Industrial Products willenhance its recurring business by expanding the sales of large industrial equipment in North America, strengthen themaintenance service business for existing products, and enter into the maintenance service business for products manufactured by other companies. Hitachi Industrial Products also aims to contribute to the reduction of CO2 emissions from energy sources by developing and providing electrified products through Joliet's sales channels.

According to the U.S. Energy Information Administration's 2023 Energy Outlook, CO2 emissions from energy sources in the United States are expected to decrease by 2050 due to the advancement of electrification, improved efficiency ofequipment, and the expansion of renewable energy generation. However, production of oil and natural gas is projected tocontinue to increase due to the growing global demand until 2050.

Hitachi Industrial Products has entered the North American energy market through a partnership with Joliet since 2002, and has delivered approximately 1,100 large motors. Through this acquisition, Hitachi Industrial Products will acquire alocal maintenance service base in advance of a significant increase in maintenance for delivered products. HitachiIndustrial Products will also collaborate with Joliet to provide maintenance service operations for approximately 7,000 windfarm generators and large motors installed in Hitachi Group products in North America. By leveraging Joliet 's sales channels, Hitachi Industrial Products aims to accelerate the transition from fossil fuel- powered engines to electrificationproducts and contribute to the reduction of CO2 emissions from energy sources by developing and providing electrificationproducts that meet customer needs for use in the upstream and downstream processes of energy resources, from drilling,refining, storage and transportation.

Furthermore, Hitachi Industrial Products will propose the replacement to high-efficiency equipment, through the repair andrebuild business which is Joliet’s strength including products manufactured by other companies and will also expand recurring business by managing CO2 emissions, collection, and re-manufacturing/reuse. In the future, Hitachi IndustrialProducts aims to collect operational data from electrification products through sensing devices and utilize Hitachi Group'sLumada(2) to develop applications for maintenance engineers. Additionally, based on the knowledge and data obtainedthrough maintenance services, Hitachi Industrial Products will grasp the potential needs of customers and propose equipment designs and energy optimization operations utilizing AI.

Hitachi announced that it has completed the acquisition of Joliet Electric Motors (Joliet), which is headquartered in Illinois, the United States, and engaged in the sales and maintenance service businessof large motors in North America from three funds(1) on January 17. Going forward, Hitachi Industrial Products (Hitachi Industrial Products), which is engaged in the large industrial equipment business, will operate Joliet's business. Joliet has a 90-year track record in the sales and maintenance service business (repair, rebuild) of large motors for theenergy and heavy industry sectors in North America. Since 2002, Joliet has strengthened its partnership with HitachiIndustrial Products as a sales distribution partner for oil drilling. Through this acquisition, Hitachi Industrial Products willenhance its recurring business by expanding the sales of large industrial equipment in North America, strengthen themaintenance service business for existing products, and enter into the maintenance service business for products manufactured by other companies. Hitachi Industrial Products also aims to contribute to the reduction of CO2 emissions from energy sources by developing and providing electrified products through Joliet's sales channels. According to the U.S. Energy Information Administration's 2023 Energy Outlook, CO2 emissions from energy sources in the United States are expected to decrease by 2050 due to the advancement of electrification, improved efficiency ofequipment, and the expansion of renewable energy generation. However, production of oil and natural gas is projected tocontinue to increase due to the growing global demand until 2050. Hitachi Industrial Products has entered the North American energy market through a partnership with Joliet since 2002, and has delivered approximately 1,100 large motors. Through this acquisition, Hitachi Industrial Products will acquire alocal maintenance service base in advance of a significant increase in maintenance for delivered products. HitachiIndustrial Products will also collaborate with Joliet to provide maintenance service operations for approximately 7,000 windfarm generators and large motors installed in Hitachi Group products in North America. By leveraging Joliet 's sales channels, Hitachi Industrial Products aims to accelerate the transition from fossil fuel- powered engines to electrificationproducts and contribute to the reduction of CO2 emissions from energy sources by developing and providing electrificationproducts that meet customer needs for use in the upstream and downstream processes of energy resources, from drilling,refining, storage and transportation. Furthermore, Hitachi Industrial Products will propose the replacement to high-efficiency equipment, through the repair andrebuild business which is Joliet’s strength including products manufactured by other companies and will also expand recurring business by managing CO2 emissions, collection, and re-manufacturing/reuse. In the future, Hitachi IndustrialProducts aims to collect operational data from electrification products through sensing devices and utilize Hitachi Group'sLumada(2) to develop applications for maintenance engineers. Additionally, based on the knowledge and data obtainedthrough maintenance services, Hitachi Industrial Products will grasp the potential needs of customers and propose equipment designs and energy optimization operations utilizing AI.

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