Share
News Release
Dissolution of AC drive joint venture with GE
May 18,2007
Fuji Electric FA Components and Systems Co., Ltd
Fuji Electric FA Components and Systems ("FCS"), a 100% subsidiary of Fuji Electric Holdings Co., Ltd., dissolved its AC drive joint ventures with General Electric Company ("GE") in January 2007.
In accordance with the dissolution agreement between FCS and GE, the parties divided the assets of the joint ventures. The joint venture's manufacturing business in Monterrey, Mexico became a 100% subsidiary of GE, and the joint venture's manufacturing business in Wuxi, China became a 100% subsidiary of FCS. It is expected that related governmental approval will be received by May end.
The parties are continuing to work together with respect to certain aspects of the AC drives business. FCS continues a brand labeling relationship, pursuant to which Fuji provides AC drives to GE under the GE label. FCS expects to start selling Fuji branded AC drives to North, Central and South America in mid 2007.