Hitachi and ABB have agreed to form a joint venture for high-voltage direct current (HVDC) system solutions in Japan. The new entity, to be based in Tokyo, will be responsible for the design, engineering, supply and after-sales services related to the DC system of HVDC projects bringing ABB's latest technologies to the Japanese market where Hitachi will be the prime contractor.
Hitachi and ABB will take equity interests of 51% and 49% respectively. This is the first step in a strategic partnership between the two companies to contribute to the evolution of Japan’s power network. Under the terms of the agreement, Hitachi as the prime contractor will be the customer of the joint venture.