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Establishment of Joint Engineering Company to Expand Systems Business in China

  Tokyo, June 21, 2018 - Fuji Electric Co., Ltd. (TSE:6504) (“FE”), headquartered in Tokyo, Japan, led by President Michihiro Kitazawa, is pleased to announce that it has entered into an agreement with Dalian Bingshan Group Management Consulting Co., Ltd.—a subsidiary of Dalian Bingshan Group Co., Ltd. (Dalian, Liaoning, China; “Dalian Bingshan” below)—to jointly establish a system engineering company, with the goal of expanding its systems business in China.

1.Background
  FE continues to strengthen its core power electronics systems business, which accounts for 60% of the entire company’s sales, and has set a policy of focusing on expanding its systems business overseas.
  China is one such region set as a focus area for expanding its overseas business. FE has continued to expand its business for products such as inverters, motors, measuring instruments, power distribution systems, and control equipment in China, and has been working with Dalian Bingshan since 2003 to manufacture and sell vending machines. Dalian Bingshan is a major manufacturer of refrigerators and A/C equipment in China. It is involved in manufacturing and selling commercial refrigeration/cold storage equipment and A/C equipment, and offers advantages in cold/heat energy equipment and technology.
  Energy consumption has been rapidly increasing following economic growth in China, and the market for energy saving products/solutions has been expanding. FE and Dalian Bingshan have recently agreed to establish a new engineering company, with the goal of combining Fuji Electric’s energy saving technology with Dalian Bingshan’s A/C cold/heat technology in order to provide systems that can help resolve energy and environmental issues facing customers in China.

2.Overview of new company
(1) Company name : Dalian Fuji Bingshan Smart Control Systems Co., Ltd. (tentative name)
(2) Location : Dalian, Liaoning
(3) Capital contribution ratio : FE 51%,
Dalian Bingshan Group Management Consulting 49%
(4) Date of Establishment : Sept. 2018 (planned)
(5) Capital : RMB 27 million (approx. JPY 450 million)
(6) Description of business :
  • The new company will handle products mainly focusing on “energy management systems (EMS)” that save energy by visualizing energy usage and providing optimal control.
  • The new company will purchase A/C and refrigeration equipment from Dalian Bingshan, and products such as power distribution facilities (such as transformers), driving devices (such as inverters and motors), measuring/control devices (such as sensors and controllers), and software from FE, and will build systems customized to customers’ facilities and equipment.
  • Dalian Bingshan offers an impressive track record within power/gas/industrial plants and assembly/processing/distribution facilities, and the new company will leverage Dalian Bingshan’s sales channels to provide system solutions that combine electricity and heat technologies.  
[Reference] Fuji Electric's business in China

[Reference] Overview of Dalian Bingshan Group Co., Ltd.
(1)HQ location : Dalian, Liaoning
(2)Representative : Zhijian Ji, President
(3) Description of business : Manufacturing and sales of industrial refrigeration/cold storage equipment, A/C equipment, petrochemical equipment, computerized control products, etc.
(4) Capital : RMB 160 million (approx. JPY 2,700 million)
(5) Established : 1985

 

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